After a decline in international crude oil prices, petrol and diesel prices cut by up to 15 paise in India. In Mumbai, the petrol price was at Rs 85.77 while diesel at Rs 73.43. In Delhi, the price of petrol was at Rs 77.96 while diesel retailed at 68.97. In Kolkata, petrol price was at Rs 80.60 and diesel stood at Rs 71.52. In Chennai, the price also slid by 15 paise at Rs 80.94 whereas diesel remained at Rs 72.82.
Though fuel prices have started to go down, people are still feeling the pinch. To cut their fuel cost, people who live in states that are closer to Nepal have been preferring to go there for tanking up their vehicle. It serves their purpose at petrol is cheaper in Nepal by around Rs 15 and diesel by Rs 18, which is a big relief even if it calls for few kilometres of extra drive.
There are also reports that in order to help cut petrol and diesel prices, the government may ask state-owned Oil and Natural Gas Corp (ONGC) to bear fuel subsidy. The government is avoiding any cut in taxes, as any cut in excise duty will bring down the revenue of the government which in turn will hamper its infrastructure growth activities. It is, therefore, looking for an alternative means to reduce petrol and diesel prices.
Last week the Kerala government reduced state taxes on petrol by Rs 1 given the sharp rise in fuel prices. The revised prices have come into effect from June 1 in Kerala. Finance Minister Thomas Issac has said tax reduction could lead to a loss of Rs 500 crore.
In another blow to the common man, the prices for Liquefied Petroleum Gas (LPG) also got increased by Rs 2.34 and Rs 48 for subsidised and non-subsidised cylinders respectively in Delhi. The new price for subsidised cylinder in Delhi is Rs 493.55, while for the non-subsidised cylinder is Rs 698.50.