Hyderabad: The petrol price in the city dropped from Rs 88.97 to Rs 86.07, a reduction of Rs 2.90, after the Centre reduced excise duty on fuel by Rs 1.50 and directed oil manufacturing companies to absorb Rs 1.
With a slew of other state governments cutting local tax, fuel in TS will now be among the costliest in the nation.
The price of diesel fell Rs 2.96, from Rs 81.99 to Rs 79.03 a litre.
This is the first instance in recent times when fuel prices have dropped.
In the nine months of this year, the price of diesel has increased 22 per cent and petrol 16 per cent.
Mr Vinay Kumar, general secretary, TS Petroleum Dealers Association, said, “The Excise duty was reduced by Rs 1.50 and OMC companies cut the price by Rs 1, an overall reduction of Rs 2.50,” he said.
The fuel prices in Andhra Pradesh, when compared to Telangana state, is less, because the AP government cut VAT by Rs 2, he added.
This is the first instance where the Centre has reduced excise duty since July last year, according to Mr D. Rakesh Reddy of factly.in, a data analyst.
“Until 2010, the government used to regulate the price of petrol and diesel and compensate the OMCs for any shortfall. In June 2010, the UPA government decided to de-regulate the price of petrol, making the price market determined based on the crude oil price of Indian basket and other factors,” Mr D. Rakesh Reddy said.
The price of diesel was deregulated in October 2014, after the NDA came to power, he added.