Published: Mon, June 11, 2018
Business | By Eloise Houston

Oil industry gets its wish, petrol & diesel profit margins jacked up

Oil industry gets its wish, petrol & diesel profit margins jacked up

On Thursday, price for petrol was ₹ 77.63 per litre, while diesel price was ₹ 68.73 a litre in Delhi. The declining trend in fuel prices, that started on May 30 with one paise, continued on the day with a fall of 21 paise per litre for petrol and 15 paise for diesel, in New Delhi.

The previous Pakistan Muslim League-Nawaz (PML-N) government, just one day before the end of its tenure on May 31, 2018, stopped the deregulation process for profit margins on high-speed diesel and secretly approved a hike in margins on diesel as well as petrol that would force oil consumers to pay extra billions of rupees.

Diesel, on the other hand, is selling at Rs 72.51 in Mumbai, 19 paise less since June 9.

The 12 days of continuous dip in fuel prices comes as a minor relief since rates were hiked constantly for a period of 16 days. The reductions come on the back of softening of global oil rates and the rupee gaining against the USA dollar. Fuel prices vary from state to state depending on local sales tax or value-added tax (VAT). Delhi has the cheapest price among all metros and most state capitals.

As a result, petrol margins were revised from November 1, 2017 and diesel margins were deferred and recommended to be deregulated from 1 December 2017. These reductions followed rates touching an all-time high of Rs 78.43 per litre for petrol and Rs 69.31 for diesel in Delhi on May 29.

The government, for its part, has said that a group of ministers is working on a 'long-term' solution to keep fuel prices in check and has also suggested that efforts are on to bring petrol and diesel under the Goods and Services Tax regime.

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