Fuel price May 31, 2022: Petrol Rs 96.72, diesel Rs 89.62 in Delhi

The oil marketing companies (OMC) left the prices of petrol and diesel steady on Tuesday. However, fuel rates have decreased significantly after Finance Minister Nirmala Sitharaman announced a reduction in excise tax on petrol by 8 rupees per litre and diesel by 6 rupees per litre. 

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Petrol will cost Rs 96.72 a litre in Delhi today, as compared to Rs 105.41 a litre, while diesel will cost Rs 89.62 a litre, as compared to Rs 96.67. After the drop in excise tax and VAT, one litre of petrol costs Rs 111.35 in Mumbai, while diesel costs Rs 97.28.  

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Fuel prices are revised daily by public sector OMCs such as Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL), and Hindustan Petroleum Corporation Ltd (HPCL) in accordance with benchmark global pricing and foreign exchange rates. 

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Any adjustments in petrol and diesel prices take effect at 6 a.m. every day. Due to local taxes such as VAT and freight costs, retail petrol and diesel prices vary from state to state.

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Following the Central Government’s decision to reduce excise duty, some state governments reduced VAT on petrol and diesel.

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The Kerala government announced a tax reduction on petrol and diesel prices of Rs 2.41 and Rs 1.36 per litre, respectively. The Rajasthan government decreased VAT on petrol by Rs 2.48 per litre and diesel by Rs 1.16 per litre, while the Maharashtra government slashed VAT on petrol by Rs 2.08 per litre and diesel by Rs 1.44 per litre. The Odisha government also cut petrol and diesel taxes by Rs 2.23 and Rs 1.36 per litre, respectively.