The people were going through a tough time with the rising fuel prices in India. It was comes as a relief to common people, as petrol and diesel prices have finally come down for the first reduction in fuel prices this year.
The new rate for a litre of petrol in Delhi costs Rs 90.99, down from Rs 91.17. Petrol rates in other major cities have also dropped like Kolkata (Rs 91.18), Mumbai (Rs 97.40), Chennai (Rs 92.95), Bengaluru (Rs 94.04), Hyderabad (Rs 94.61) and Jaipur (Rs 97.56).
The diesel price in Delhi has now come down to Rs 81.30, down 17 paise. It has also dropped in other major cities including Kolkata (Rs 84.18), Mumbai (Rs 88.42), Chennai (Rs 86.29), Jaipur (Rs 89.84), Bengaluru (Rs 86.21) and Hyderabad (Rs 88.67).
The major reason behind the price drop is that in the international market, the price of crude oil has been cut by up to 10 per cent in 15 days. The price has come down from a high of USD 71 per barrel to USD 64 per barrel. Earlier in February, petrol and diesel were hiked 16 times. However, the bigger reason behind India’s excessive petrol and diesel rates is the high fuel tax levied by the Centre and state governments.
Given the fact that higher fuel prices are affecting demand negatively, a decision should be taken soon on giving tax relief. It may be noted that nearly 60 per cent of the price of petrol and diesel in India comprises taxes.
In the past that high fuel prices could contribute to inflationary pressure and ultimately impact India’s economic recovery in the near-term. Higher petrol and diesel prices have already had a surging impact on essential commodities and services.