New Delhi: After the government’s move to cushion the common with some comfort with one-off excise duty cut, the fuel prices continued to spike on Tuesday with the petrol being sold at Rs 82.26 per litre in Delhi and Rs 87.73 in the national capital – an increase of Rs 0.23 from Monday.

Similarly, a litre of diesel was priced at Rs 74.11 in Delhi and Rs 77.68 in the financial capital – a spike of Rs 0.29 and Rs 0.31 respectively.

On Monday, petrol crossed the psychological mark of Rs 82 in the national capital while in Mumbai, it was sold at Rs 87.50 per litre. (Check Live Petrol And Diesel Prices Here)

Petrol and diesel prices were cut by a minimum Rs 2.50 on October 5 when the government’s only second cut in excise duty of Rs 1.50 per litre and state-owned fuel retailers providing a Re 1 per litre subsidy came into effect. In BJP-ruled states, the reduction was higher as they matched the cut with a similar reduction local sales tax or VAT.

But the prices were on the rise from the very next day. Petrol price was hiked by 18 paise a litre on October 6 and 14 paise on Sunday, according to daily price notification issued by state-owned oil firms.

Petrol, which in Delhi was cut to Rs 81.50 on October 5, on Sunday costed Rs 81.82. Similarly, diesel rates were hiked by 29 paise a litre each on October 6 and Sunday. It costed Rs 73.53 per litre in Delhi, up from Rs 72.95 on October 5, according to the oil firms.

Delhi, which did not cut VAT on fuel, still has the cheapest fuel in all metros and bulk of state capital as it levies lower taxes. Mumbai despite reducing VAT on petrol still has the highest priced fuel.

Petrol prices had hit an all-time high of Rs 84 per litre in Delhi and Rs 91.34 in Mumbai on October 4. Diesel rates too had peaked to Rs 75.45 a litre in Delhi and Rs 80.10 in Mumbai. Following the twin decision, they fell to Rs 81.50 per litre of petrol in Delhi and Rs 86.97 in Mumbai.

The government on Monday asked the opposition parties to desist from spreading “propaganda” against the Centre over the issue of oil prices and instead slash petrol and diesel rates in states ruled by them.

BJP spokesperson Meenakshi Lekhi told reporters that while the Centre and the states ruled by her party have brought down petrol and diesel prices by Rs 5, opposition parties like the Congress and the Aam Aadmi Party have not helped the masses by effecting a cut.

She argued that states have been benefitting due to rise in oil prices as the taxes they earn are based on a fixed percentage of the cost of petrol and diesel per litre, while the Centre’s share of revenue is fixed for every litre.

Even out of the excise duty of Rs 19 the central government earns on a litre of petrol, 42 per cent goes to the states which, she added, earn extra revenue based on the value added tax they levy. It ranges from 26 per cent to 30 per cent for most states.

After the Centre cut excise duty by Rs 1.50 per litre and asked PSU oil firms to subsidise fuel by Re 1, Maharashtra and Gujarat governments were among the first to announce a matching Rs 2.50 cut.

They were later joined by Chhattisgarh, Jharkhand, Tripura, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Haryana Assam, Uttarakhand, Goa and Arunachal Pradesh with similar moves. Jammu and Kashmir, which is under governor’s rule, too reduced tax on the two fuel.

Maharashtra, however, reduced VAT only on petrol and not on diesel.

Even before the excise duty cut, Rajasthan, West Bengal, Karnataka, Kerala and Andhra Pradesh had last month reduced VAT to cushion consumers for a spate of price increases.

The reduction in excise duty, only the second in four years of BJP-led NDA rule, will dent central government revenues by Rs 10,500 crore and was aimed at cooling retail prices that had shot up to an all-time high.

The BJP-government at the Centre had raised excise duty on petrol by Rs 11.77 a litre and that on diesel by Rs 13.47 a litre in nine installments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.

Prior to Friday’s cut, petrol price had risen by Rs 6.86 a litre and diesel by Rs 6.73 since mid-August – the most in any six-week duration after the daily price revision was introduced in mid-June last year.

Industry sources said for state-owned fuel retailers absorbing Re 1 per litre price would mean a Rs 9,000 crore hit on profits on an annualised basis. For the remainder of current fiscal, it would be Rs 4,500 crore, with IOC’s share being roughly half and the rest is split equally between HPCL and BPCL.

Almost half of the fuel price is made up of taxes. The Centre, prior to the excise duty cur, levied a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. On top of this, states levy value-added tax (VAT).

The hike in duties in 2014-16 had led to excise collections from petro goods rising from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18. States saw their VAT revenue rise from Rs 1,37,157 crore in 2014-15 to Rs 1,84,091 crore in 2017-18.