Petrol and diesel prices on Friday, November 5, saw a sharp decline as more states had announced VAT cuts. Several states joined the Centre in cutting down the fuel rates, which were at shocking highs in the recent past. Petrol, diesel price saw their lifetime high before the Centre and the states announced excise cuts. On the eve of Diwali, that is on Wednesday evening, the central government announced a cut in excise duty on petrol by Rs 5 per litre and diesel by Rs 10 per litre. The additional step by states also helped reduce the petrol and diesel rates, which witnessed relentless hikes over the recent months.
With this price reduction, petrol was priced at Rs 103.97 in the national capital of Delhi. On the other hand, one litre of diesel here cost Rs 86.67 after the excise cut.
Petrol price in Mumbai was cut to Rs 109.98 per litre. Diesel price in the financial capital stood at Rs 94.14 for one litre after the price cut.
In West Bengal capital Kolkata, price of one litre of petrol on Friday stood at Rs 104.67. On the other hand, the price of one litre of diesel was fixed at Rs 89.79 in the eastern metropolitan city.
In Chennai, petrol price was reduced to Rs 101.40 for one litre while the price of that amount of diesel stood at Rs 91.43. Petrol price in Bhopal was at Rs 107.23, while diesel price in the Madhya Pradesh city was at Rs 90.87.
The excise duty cuts on diesel and petrol will cost Rs 45,000 crore and lead to a 0.3 percentage point widening on the Centre’s fiscal deficit, a foreign brokerage said on Thursday, as per a report by news agency PTI. As per the economists of Japanese brokerage house Nomura, costs due to the government’s move or the entire fiscal will come at Rs 1 lakh crore or 0.45 per cent of GDP.
Wednesday’s excise cut in fuel rates were the highest-ever such reduction in history. However, according to the economists, the move only partly reverses the hike in duties in 2020 by Rs 13 per litre for petrol and Rs 16 per litre on diesel, following a steep drop in oil prices, and comes on the heels of higher crude prices pushing retail prices to record highs.
“Government of India has taken a significant decision of reducing Central Excise Duty on Petrol & Diesel by Rs 5 and Rs 10 respectively from tomorrow. Prices of petrol and diesel will thus come down accordingly,” the finance ministry had said in a statement on Wednesday.
“The Government of India has made efforts to ensure that there is no energy shortage in the country and that commodities such as petrol and diesel are available adequately to meet our requirements,” it added.
Following are the prices of diesel and petrol across some cities in the country:
Mumbai
Petrol – Rs 109.98 per litre
Diesel – Rs 94.14 per litre
Delhi
Petrol – Rs 103.97 per litre
Diesel – Rs 86.67 per litre
Chennai
Petrol – Rs 101.40 per litre
Diesel – Rs 91.43 per litre
Kolkata
Petrol – Rs 104.67 per litre
Diesel – Rs 89.79 per litre
Bhopal
Petrol – Rs 107.23 per litre
Diesel – Rs 90.87 per litre
Hyderabad
Petrol – Rs 108.20 per litre
Diesel – Rs 94.62 per litre
Bengaluru
Petrol – Rs 100.58 per litre
Diesel – Rs 85.01 per litre
Chandigarh
Petrol – Rs 100.12 per litre
Diesel – Rs 86.46 per litre
Guwahati
Petrol – Rs 94.58 per litre
Diesel – Rs 81.29 per litre
Lucknow
Petrol – Rs 95.28 per litre
Diesel – Rs 86.80 per litre
Gandhinagar
Petrol – Rs 95.35 per litre
Diesel – Rs 89.33 per litre
Thiruvananthapuram
Petrol – Rs 106.36 per litre
Diesel – Rs 93.47 per litre
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