Bhubaneswar/New Delhi: Fuel prices continued with the rising trend with petrol and diesel costing dearer in Bhubaneswar on Tuesday.
Petrol was selling at Rs 92.19 per litre in the Odisha capital on Tuesday, up from Monday’s Rs 91.76 per litre.
Similarly, diesel was priced at Rs 89.07 per litre on Tuesday. It was Rs 88.65 per litre on Monday.
Relief In Sight!
On a positive note, however, there may be relief in sight for consumers.
According to media reports, the Union Finance Ministry is considering cutting excise duties on petrol and diesel to cushion the impact of record high domestic prices.
The ministry has now started talks with some states, oil companies and the Union Oil Ministry to find the most effective way to lower the tax burden on consumers without federal finances taking a big hit, government sources were quoted as saying in a report by news agency Reuters.
“We are discussing ways in which prices can be kept stable. We will be able to take a view of the issue by mid-March,” an official said.
At the same time, the sources informed that the government wants oil prices to stabilise before cutting taxes, as it does not want to be forced to change the tax structure again, should crude prices rise further.
Blame It On Taxes, Duties
A doubling in the price of crude oil over the past 10 months has contributed to record fuel prices at gas stations in India. But taxes and duties account for roughly 60% of the retail price of petrol and diesel in the country, the world’s third biggest consumer of crude oil.
As the coronavirus pandemic hit economic activity, the government twice raised taxes on petrol and diesel in the last 12 months to boost sagging tax revenues instead of passing on the benefits of low oil prices last year to consumers.