Today—Tuesday, March 31—petrol and diesel prices remain stable across the country. According to the rates released on the morning of March 31, the retail price of regular petrol at fuel pumps in the national capital Delhi is ₹94.77 per litre, while diesel is priced at ₹87.67 per litre. Whereas, the price of XPN5 petrol is ₹ 101.89 per liter and the price of XG diesel is ₹ 91.49 per liter. Let’s take a look at the current rates of petrol and diesel in different cities of the country:
City Petrol (per litre) Diesel (per litre) Delhi Rs 94.77 Rs 87.67 Mumbai Rs 103.54 Rs 90.03 Kolkata Rs 105.45 Rs 92.02 Chennai Rs 100.80 Rs 92.39 Jaipur Rs 104.88 Rs 90.36 Bengaluru Rs 102.92 Rs 90.99 Lucknow Rs 94.65 Rs 87.76 Patna Rs 105.18 Rs 92.04 Port Blair Rs 82.46 Rs 78.05
**Government reduced tax on petrol and diesel**
To provide relief to the common people, the government has recently reduced the excise duty on petrol and diesel by ₹10 per litre. The move is aimed at maintaining adequate supply of diesel and ATF (Aviation Turbine Fuel) within the country to ensure energy security despite disruptions and uncertainties in global supply. The government has also given relief to oil marketing companies by reducing taxes on petrol and diesel. Fuel prices are likely to remain stable as their financial losses (under-recovery) reduce.
**Impact of cut in excise duty**
This question may arise in the minds of people that despite the reduction in excise duty, why have the prices of petrol and diesel not reduced in the country? In fact, crude oil prices in international markets have crossed the level of $115–$116 per barrel. As a result, operating costs of oil marketing companies have increased. In these circumstances, instead of reducing retail prices, companies are using available margins to absorb these increased costs.
While the government has undoubtedly provided relief by cutting excise duty—because without the cut, petrol prices would have reached between ₹115 to ₹120 per liter today—the impact of the relief provided by the excise duty cut is diminishing due to the devaluation (weakening) of the Indian rupee. India purchases crude oil in US dollars; Therefore, a weaker rupee means more dollars have to be spent on imports. In short, this is the factor driving up the cost.