On this, the government levies Rs 36.03 in taxes, pushing the fuel's retail price to Rs 77.83 per litre in the national capital, as on May 25. Though the daily revision hike has come down marginally from over 30 paise per litre last week to 15 paise, we are yet to experience an ease in rates from the decline in oil prices globally. Diesel prices, which have already hit all-time highs, also rose around Rs 3 a litre during the period.
In Mumbai and Chennai, petrol was sold at Rs. 85.78 and Rs. 80.95 a litre respectively, up from Rs. 85.65 and Rs. 80.80 on Friday.
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In addition, price in Kolkata inched up to Rs 80.76, against 80.61 per litre on the previous day.
A possible drop in Venezuela's crude output after a disputed presidential election, potential U.S. sanctions on the country as well as US' tough stance on Iran are the key price drivers.
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Global crude oil prices had risen in the period, while the rupee fell against the United States dollar - both factors make the fuels costlier. "The government will have to find a solution to this crisis", said RS Sharma, former chairman of ONGC. A similar tax was considered in 2008 when oil prices were on the rise but the idea was dropped after stiff opposition from private sector firms like Cairn India. However, Bihar Deputy Chief Minister Sushil Kumar Modi on Sunday said that "it is a big misconception (among the people) that price of petroleum products will be reduced significantly if they are brought under GST ambit". This is obviously an act of breach of trust against the citizens of India in violation of assumed memorandum of understanding that the rates of oil should go up and down with every fluctuation of the crude oil prices. "Central government saves Rs 15 on every litre of petrol due to fall in crude oil prices. We are not going to call a strike but buses will automatically go off the road", Joint Council of Bus Syndicates' said.
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