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Fuel Prices Raised In First Revision Since December, LPG Worth Rs 50 More

Fuel prices rose 80 paise per liter in Delhi, the first revision since December 1

Retail prices of petrol and diesel rose by 80 paise each in Delhi from 6am Monday, marking the first revision since December 1, 2021 and PTI reported the price of domestic cooking gas (or LPG) was raised by ₹ 50 per cylinder, citing sources.

On Tuesday, a liter of petrol rose to ₹ 96.21 at Rajdhani Service Station in Delhi, while the diesel rate rose to ₹ 87.47 a liter, reflecting an 80 paise increase from the petrol cost of ₹ 95.41 on Monday, while the diesel rate was at ₹ 86.67 per liter.

While PTI reported, the price of domestic cooking gas (or LPG) was raised by ₹ 50 per cylinder on Tuesday for the first time since early October, citing sources.

The increase in retail fuel prices came for the first time since November and remained unchanged across metro cities for the longest period since the daily price review began in June 2017.

But speculation suggests that fuel prices may rise when rally elections have come to an end in Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur.

The center has cut excise duties on November 4, 2021, to provide relief from prices that have reached all -time highs. The government has reduced the petrol tax by ₹ 5 per liter and diesel by ₹ 10 per liter, leading to a significant drop in fuel prices.

Then in December 2021, the Delhi government reduced the value added tax (VAT) on petrol from 30 per cent to 19.40 per cent. With this, the price of petrol in the capital has been lowered by ₹ 8.56 per liter.

India imports about 85 percent of its oil needs, making it the third largest importer and consumer of oil in the world. The country’s local petrol and diesel prices are linked to the international costs of the two fuels, which move in proportion to the price of crude oil.

The benchmark Brent crude oil price has risen sharply to nearly $ 120 a barrel following an escalation in the Russia-Ukraine conflict and has put pressure on national fuel companies to raise retail prices.

Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation – three large government -run companies – dominate fuel retail and tend to move their prices together.

Reuters had reported late on Monday that retail fuel prices would rise from Tuesday for the first time after a 4 -month hiatus, citing two dealers, with one of them adding that there may be a regular increase in pump prices.

Still, the latest price hike means consumers will pay less than 1 percent more at the pump, despite a significant increase in global oil prices since the conflict in Ukraine began last month and the fall of the Indian rupee, Reuters reported.

The government last week said it was constantly monitoring evolving geopolitical developments and would make ‘calibrated interventions’ to keep fuel prices under control “to safeguard the interests of ordinary people.”


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