Petrol and diesel prices have been deregulated by Rs 2 per litre across the nation by the Petroleum Ministry, Government of India. The new prices would be effective from midnight of December 15, 2014 across the nation. It is the 8th reduction on the trot in the prices of petrol since August 2014, while the diesel prices have been slashed for the fourth consecutive time since October 2014.
The foremost reason behind this deregulation is said to be the falling international oil prices. The crude oil prices in June, 2014 were USD 115 per barrel, while now they have slumped to a five-year low at USD 62.37 per barrel. In the national capital, Delhi, the revised petrol and diesel prices are Rs 61.33 per litre and Rs 50.51 per litre, respectively. This is the lowest petrol price in Delhi for the past 4 years and lowest diesel since July 2013. While in Mumbai, which is also touted as the financial capital of India, the revised prices of petrol and diesel stand as Rs 68.86 per litre and Rs 57.91 per litre, respectively. The prices would vary in each and every state due to different rates of local sales tax or VAT.
The Narendra Modi-led NDA Government, lastly, slashed the petrol and diesel prices around a fortnight back on December 1 by 91 paisa a litre and 84 paisa per litre, respectively. Cumulatively, the petrol prices have been reduced by Rs. 12.27 per litre since August, 2014 and diesel prices by Rs 8.46 per litre since October 19, 2014. In fact, the diesel prices witnessed reduction for the first time in more than five years on October 19, when the government deregulated it by Rs. 3.37 per litre.
There could have been another reduction on November 15 but the government mopped up, raising excise duty on petrol and diesel by Rs 1.50 a litre each. In the two excise duty hikes, the government has raised its revenue by Rs 10,600 crore this fiscal.