New Delhi: After remaining unchanged for a couple of days, petrol and diesel prices in Delhi on Saturday increased a bit at Rs 83.40 per litre (increase by Rs 0.22) and Rs 74.63 per litre (increase by Rs 0.21) respectively. Likewise in Mumbai, petrol was at Rs 90.75 per litre (increase by Rs 0.22) and diesel was at Rs 79.23 per litre (increase by Rs 0.22), respectively.
As per our pricing mechanism, the domestic fuel prices depend upon the international fuel prices on a 15-day average and the value of the Indian rupee.
Fuel prices have been witnessing a steep rise for the past few weeks. While the Opposition has blamed the Centre for not doing enough to keep a check on prices, the latter has maintained that global crude oil prices and other international factors are causing a hike in prices of petroleum products. As per India’s pricing mechanism, the domestic fuel prices depend upon international fuel prices on a 15-day average and the value of the Indian rupee.
Meanwhile, the Maharashtra government had confessed the state would lose revenue to the tune of Rs 2,200 crore per year if it slashed the prices of petrol and diesel by Rs 1/litre.
Earlier this month, an application was filed in the Delhi High Court seeking direction to the Centre to produce records on the basis of which daily prices of fuel were being fixed by oil companies. A bench of Chief Justice Rajendra Menon and Justice VK Rao said it was not going into the issue and will not interfere with the government’s decision. The application was filed in a pending petition challenging the daily rise in fuel rates and seeking a direction to the central government to fix a fair price for petrol and diesel by treating them as essential commodities.
In past, Union Minister Dharmendra Pradhan had reiterated his stand on bringing the fuel under the GST ambit. Recently, he had said, “I want petrol and diesel to come under the ambit of GST. The GST Council should take a decision on this.” Shifting the onus of bringing about the change on the state governments, Pradhan said, “The state governments are more powerful than the Centre in GST Council meeting.”