Petrol, diesel prices remain unchanged for sixth consecutive day
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Petrol and diesel prices on Tuesday remained unchanged for the sixth consecutive day.

In the national capital, the prices of petrol and diesel remained steady at Rs 86.30 and Rs 76.48 per litre, respectively, according to a price notification issued by oil marketing companies (OMCs).

In Mumbai, Chennai, and Kolkata, petrol was sold for Rs 92.86, Rs 88.82, and Rs 87.69 per litre, respectively.

Diesel prices in Mumbai, Chennai, and Kolkata too remained unchanged at Rs 83.30, Rs 81.71, and Rs 80.08 per litre, respectively.

Meanwhile, the government on Monday imposed agriculture and infrastructure development cess at the rate of Rs 2.5 per litre on petrol and Rs 4 per litre on diesel to mobilise additional resources for the massive investment required in these two segments of the economy that hold the key to bringing the country back on the growth path.

However, to prevent the additional cess from impacting the retail price of two fuels that have already reached record levels across the country, Finance Minister Nirmala Sitharaman announced a reduction in the basic excise duty and special additional excise duty on petrol and diesel.

Overall, while the agriculture and infrastructure cess will raise the level of taxation on the fuels, reduction in excise duty will make the taxation proposal in the Budget tax neutral, which will keep OMCs from raising the fuels' retail prices based on the new imposition.

The rise in petrol and diesel prices is on hold for the last six days, but before that, it had risen 10 times in January with the two auto fuels increasing by Rs 2.59 and Rs 2.61 per litre respectively.

The high retail price in the country is despite the global crude price being at $55 per barrel, a lot lower than the $80 a barrel in October 2018 when petrol and diesel prices had first reached historically high levels.

(With inputs from agencies)

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