New Delhi: Petrol and diesel prices may see a big increase of Rs 5 to Rs 6 per litre on Thursday as international prices of crude have soared.
The fuel prices are revised every 15 days as per international prices of crude and Rupee value against the dollar. Indian basket crude oil prices have seen a big jump from an average of $ 44.46 per barrel in November to $53.38 on Tuesday.
However, according to sources, due to demonetisation, the government may decide not to go for a hike in one go. India deregulated the price of petrol in 2010 and that of diesel in 2014.
There has been criticism of the Modi government that while it passes the hike in crude oil prices to people, the benefit from lower crude is not fully transmitted to the consumers. Instead, the government hiked excise duty whenever crude oil price fell by large margin.
Crude oil prices were at $110 per barrel in 2010 against $44 per barrel last month. But the fall in prices in petrol and diesel for the common man has been to a lesser extent.
The total taxes by Centre on unbranded petrol is Rs 21.48 per litre against Rs 9.48 per litre in April, 2014. Delhi government VAT comes to around Rs 14.09 a litre on petrol.
The total excise duty on diesel is Rs 17.16 per litre against Rs 3.65 per litre in April, 2014. Delhi imposes VAT at a rate 17 per cent, which means that taxes form 46.5 per cent of the retail price of diesel.
Rs 500 notes go from midnight
By Thursday, December 15, the government will have completed a total phase-out of old high denomination currency notes as the exemption extended to Rs 500 notes for use at petrol pumps, toll plazas, LPG centres and for paying taxes comes to an end. After December 15, only banks will accept old Rs 500 notes that too in the form of deposits.
