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      16th Petrol Hike in 16 days – Prices continue to Soar

      by Charu Kathpalia
      June 6, 2018
      in News
      Reading Time: 2 mins read
      71 1
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      Petrol Price Hike
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      Despite nation-wide outrage and criticism, both gas and gas prices were hiked on Tuesday for its 16th consecutive moment. Petrol cost in Delhi now is 78.43 a litre whenever it’s being sold at the rate of Rs 86.24 a litre at Mumbai. In Delhi-NCR gasoline has been sold at Rs 79.19 per litre, Rs 78.95 per litre, Rs 78.87 per litre and Rs 78.75 per litre at Faridabad, Gurgaon, Noida and Ghaziabad respectively.

      Petrol prices around places

      Back in Bengaluru, one litre of gasoline prices Rs 79.71. The revised costs came into effect at 6 am now.

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      Diesel, and that’s precisely what most vehicles utilise, additionally touched a new top. While the cost of petrol in Delhi is Rs 69.31 per litre plus it’s Rs 73.79 per litre at Mumbai.

      Petrol diesel prices hike

      Union Petroleum and Natural Gas Minister Dharmendra Pradhan had previously promised the people that the authorities would take a remedy to attack the circumstance.

      Back in April, Pradhan had stated that the Centre and the state authorities have been contemplating bringing the oil products under the ambit of Goods and Services Tax.

      Last week, BJP President Amit Shah had stated that a strategy had been worked on to check gas costs in the nation. Addressing the furore over fuel price increase, Shah had noted that the government officials had been carrying the dilemma of gas price increase seriously.

      States can reduce gas cost by Rs 2.65/litre by providing up extra profits: SBI

      Meanwhile, a State Bank of India (SBI) report Monday stated that nations could cut gas cost by Rs 2.65 each litre and diesel by Rs 2 a litre should they opt to forego possible added gains from high crude petroleum prices.

      increase in petrol pricesThe report of SBI stated, “Given that these revenues if foregone will not impact states fiscal position, we estimate that on an average, states can cut petrol prices by Rs 2.65/litre and diesel by Rs 2/litre, if the entire revenue gain was to be neutralised. This is the most plausible scenario under the current circumstances”.

      Additionally, it stated that one proposal to further rationalise the gas and gas prices would be to think about a pricing mechanism at which VAT is levied on base cost only by countries rather than on charges inclusive of the Centre’s tax.

      If that was the situation, gas costs could reduce by Rs 3.75 a litre and petrol prices by Rs 5.75 a litre it also stated.

      Ecowrap added, “However if this were to happen, the state would have to forego Rs 34,627 crore of tax revenue / 0.2% of a consolidated fiscal deficit of states.”

      The contrary section

      On the flip side, in case the Centre cuts the excise by Re 1, then the reduction of earnings is going to be on the tune of Rs 10,725 crore for every Re one slice at central excise, and the sum will end up double if it cuts down the excise duty by Rs two.

      This will push the shortage of Centre, unlike countries, it included. Petrol price was increased by Rs 3.80 a litre and diesel by Rs 3.38 at Delhi, and Rs 3.76 a litre on petrol and Rs 3.59 on diesel in Mumbai since petroleum oil companies finished a 19-day pre-Karnataka survey hiatus to resume daily cost revision on May 14. The rates are at an all-time large.

      Tags: Petrol Price TodayPetrol prices soar
      Charu Kathpalia

      Charu Kathpalia

      Charu is an author, contributor who loves to write about health topics, entertainment and public figures. She is an avid music lover.

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