Petrol and diesel prices hiked by ₹3 per litre, first major increase in over four years, to stem OMC losses.
Petrol and diesel prices were hiked by ₹3 per litre across all variants, marking the first major increase in over four years. This move aims to help state-run oil marketing companies (OMCs) stem losses caused by global price and supply pressures due to the West Asia war. The price of regular petrol in Delhi is now ₹97.77 a litre, and diesel is ₹90.67 a litre. CNG prices also increased by ₹2 a kg. The Centre also imposed a windfall gains tax of ₹3 a litre on petrol exports, while reducing the levy on diesel and aviation turbine fuel to ₹16.5 a litre, effective Saturday. Experts suggest a larger hike is needed to cover OMCs' under-recoveries fully.
Key Points
- Petrol and diesel prices have been increased by ₹3 per litre, the first significant hike in over four years.
- The hike aims to mitigate losses incurred by state-run Oil Marketing Companies due to global price and supply pressures.
- The Centre also imposed a windfall gains tax of ₹3 per litre on petrol exports and adjusted levies on diesel and aviation turbine fuel.
- Experts indicate that the current hike is insufficient to fully cover the under-recoveries faced by OMCs.
- The Union Petroleum Minister stated that OMCs were losing approximately ₹1,000 crore per day from combined sales of petrol, diesel, and LPG.
Exam Facts
- Petrol and diesel prices increased by ₹3 per litre.
- Regular petrol price in Delhi is now ₹97.77 a litre, and diesel is ₹90.67 a litre.
- CNG prices were hiked by ₹2 a kg.
- Windfall gains tax of ₹3 a litre imposed on petrol exports, effective Saturday.
- Levy on diesel reduced to ₹16.5 a litre and aviation turbine fuel to ₹16 a litre.
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