In the global market, oil prices slipped on Monday, clipping strong gains made in the previous session after OPEC+ agreed last week to gradually ease some of its production cuts between May and July.
Dharmendra Pradhan, Petroleum Minister indicates petrol, diesel prices to come down in the coming days, whereas fuel prices in Mumbai are higher among other major cities. In Delhi, petrol was priced at Rs 90.56 per litre while diesel was being sold at Rs 80.87 per litre. In Mumbai, petrol is priced at Rs 96.98 a litre while diesel is at Rs 87.96 a litre.
The discrepancy in prices between Delhi and Mumbai is owing to different prices in different cities. Petrol and Diesel prices are fixed based on freight charges, local taxes, and VAT. Currently, the base price of petrol is Rs 32.79 per litre followed by a freight charge of Rs 0.28 per litre. The dealer is charged 33.07 per litre for petrol to which Rs 32.90 per litre excise duty is added, along with dealer commission of Rs 3.69, and VAT of Rs 20.90 per litre.
Union Petroleum Minister Dharmendra Pradhan told Afternoon Voice, “The Petrol, diesel and LPG prices have started dipping now and they’ll lessen further in the coming days. This is mostly because the situation in the international market has massively upgraded.”
“We had stated earlier also that we’ll transfer benefits from a decrease in crude oil prices in the international market to the end customers,” Pradhan said further.
The central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel. Centre charges Rs 32.90 per litre of excise duty on petrol and Rs 31.80 a litre on diesel. Petrol and diesel prices are generally reviewed daily in line with benchmark international crude prices and foreign exchange rates.