Petrol dropped to Rs 103.97, diesel Rs 86.67 in Delhi; check November 5 fuel prices
- Fuel prices fell sharply as several states announced VAT cuts
- Central government declared an excise duty drop of Rs 5 per litre for petrol and Rs 10 for diesel on Diwali
- Petrol prices in most cities remain high, at or over Rs 100 per litre
Petrol and diesel prices fell dramatically in numerous states on Friday, as additional states announced Value-Added Tax (VAT) cuts in response to the Centre's decision to reduce fuel excise tax.
The Centre's cut in excise tax, followed by reductions in VAT in various states, has resulted in a dramatic decline in petrol and diesel rates after they had hit an all-time high.
While some analysts believe that petrol and diesel prices will continue to climb as global crude oil prices rise, the recent price drop is likely to give much-needed respite to residents and businesses.
It should be mentioned that the national government declared an excise duty drop of Rs 5 per litre for petrol and Rs 10 per litre for diesel on the eve of Diwali.
Following the Centre's decision, various states, including Odisha, Arunachal Pradesh, Madhya Pradesh, Nagaland, Himachal Pradesh, Karnataka, Mizoram, Haryana, Uttar Pradesh, Gujarat, and Bihar, have reduced VAT on fuel prices. VAT has also been reduced in three Union Territories: Puducherry, Jammu & Kashmir, and Chandigarh.
Petrol currently costs Rs 103.97 per litre in Delhi and Rs 109.98 per litre in Mumbai as a result of the price decrease. In Kolkata, it is now Rs 104.67 a litre, and in Chennai, it is Rs 101.51 per litre.
Petrol prices have dropped considerably in various places, including Bengaluru (Rs 100.58/litre), Gurugram (Rs 95.90/litre), Noida (Rs 95.36/litre), and Lucknow (Rs 95.28/litre), following the lowering of VAT.
However, petrol prices in most cities remain high, at or over Rs 100 per litre.
Diesel prices have also dropped significantly as a result of the Centre's and states' tax reduction. It is now 86.67 rupees a litre in Delhi, 89.79 rupees in Kolkata, 94.14 rupees in Mumbai, and 91.53 rupees in Chennai.
Diesel prices in certain cities, including Bengaluru, Noida, Gurugram, and Lucknow, have gone below Rs 90 per litre for the first time in over a month.
Fuel price cuts may not bring immediate relief in terms of commodity costs, but analysts believe they will lessen inflationary pressures on the economy and help firms slash input costs.