Relief on the cards as Karnataka hints at reducing fuel prices

Hike in fuel prices continue, petrol nears Rs 90 mark in Mumbai

Petrol hits a record at Rs 89/litre in Mumbai, Rs 81.63/litre in Delhi

The prices of domestic fuels continued to rise on Saturday with petrol being sold at Rs 81.63 per litre and diesel at Rs 73.54 per litre in the national capital.

The Karnataka government chose to cut fuel prices by Rs. 2 per litre.

Petrol and diesel prices have been rising nearly every day in the past one month.

The Vasundhara Raje government in Rajasthan too had announced tax cuts on petrol and diesel, which led to prices falling by Rs. 2 per litre.

Since oil prices have started rising, following U.S. sanctions on Iraq and the slide of the rupee against the dollar, there have been calls to reduce tax.

The prices of petrol and diesel rose once again this morning, continuing a recent trend of almost daily hikes.

The price of Brent crude oil is now over $78 per barrel. According to petrol pump owners, fuel prices vary depending on the transportation cost from the petroleum refinery to the city. Meanwhile, the Maharashtra government said it was working on proposals to reduce the fuel prices. As a result, the prices of both fuels has declined by Rs 2.5 per litre. The price break-up of petrol in Delhi as on September 10 includes excise duty of Rs. 19.48, dealer commission of Rs. 3.64, and value-added tax of Rs. 7.16 (including VAT on dealer commission). The Opposition parties had recently called for a nationwide bandh to protest the hike in fuel prices.

The state-owned oil firms had in mid-June last year dumped the 15-year practice of revising rates on the first and 16th of every month in favour of daily revisions. But over it, both Centre and the states levy taxes.

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