Petrol, diesel prices remain unchanged today –Check prices in metro cities

New Delhi: Petrol and diesel prices remained unchanged on Wednesday. Though petrol prices have not been altered in the last nine days, diesel prices were hiked on Tuesday.

Diesel is now priced at Rs 80.78 per litre and petrol will cost Rs 80.43 per litre in Delhi. In Kolkata, petrol is priced at Rs 82.10 per litre and diesel costs Rs 75.89. In Mumbai, petrol comes for Rs 87.19 a litre and diesel for Rs 79.05. In Chennai petrol is priced at Rs 83.63 a litre and diesel at Rs 77.91.

Diesel is still costlier than petrol in the National capital. Diesel price for the first time in living memory crossed the rate of petrol in the national capital on June 24 hitting Rs 79.76 a litre.

Rates differ from state to state depending on the incidence of VAT. However, diesel is costlier than petrol only in the national capital where the state government had raised local sales tax or VAT on the fuel sharply in May.

Traditionally, diesel was priced Rs 18-20 a litre lower than petrol due to lesser taxation. But over the years, the taxes have increased, narrowing the gap.

The Delhi government had on May 5 hiked Value Added Tax (VAT) on diesel from 16.75 per cent to 30 per cent and on petrol from 27 per cent to 30 per cent. Since the levy is ad valorem, the actual incidence has gone up every single time oil companies raised retail selling price.

Taxes make up for nearly two-third of the retail selling price. As much as Rs 50.69 per litre, or 64 per cent, in petrol price is due to taxes – Rs 32.98 is the central excise duty and Rs 17.71 is local sales tax or VAT.

Over 63 per cent of the retail selling price of diesel is taxes. Out of the total tax incidence of Rs 49.43 per litre, Rs 31.83 is by way of central excise and Rs 17.60 is VAT.
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