Fuel Price: Big news for common people. The Modi administration has recently adjusted the windfall tax rates on diesel, aviation fuel (ATF), and petrol. This modification, effective from July 16, is part of a bi-weekly review process. As per the Ministry of Finance notification, the windfall tax on petrol has been decreased to Rs 2.5 per liter from Rs 4, while the tax on diesel has been raised from Rs 8.5 to Rs 15.5 per liter. Similarly, the windfall tax on ATF has been increased from Rs 7.5 to Rs 14.5 per liter. These alterations are not expected to impact the general public.
The rationale behind the tax revision is the current high volatility in the global oil market. Recent events such as the US reinstating a naval blockade on Iran, threats to oil supplies through the Strait of Hormuz, and geopolitical tensions have led to a surge in Brent crude oil prices. This, along with supply constraints like reduced Russian exports, has put pressure on the oil market.
In response to concerns over fuel availability, hoarding, and supply disruptions, the government had previously prohibited bulk purchases of petrol and diesel from retail outlets. This measure aimed to maintain a steady fuel supply to consumers amidst global uncertainties. The restriction on diesel sales from retail pumps was lifted on July 1st after being in effect for 90 days, allowing normal purchasing to resume.
What impact will this have on the common man’s pocket?
Will this decision to hike petrol and diesel taxes change the prices of petrol and diesel for the common man? The answer is no, because Windfall Tax is an additional tax imposed by the government on companies or industries, aimed at ensuring fuel availability in the domestic market and preventing exporters from taking excessive advantage of international prices. This means that this government decision will not result in any increase in petrol and diesel prices within the country.
What is the price of petrol and diesel today?
If we look at the rates of petrol and diesel in the four metropolises of the country on Thursday, then in New Delhi, petrol is Rs 102.12 per liter and diesel is Rs 95.20 per liter. In Kolkata, petrol price is Rs 113.48 per liter and diesel price is Rs 99.82 per liter. In Mumbai, petrol is being sold at ₹111.21 per liter, while diesel is being sold at ₹97.83 per liter, whereas in Chennai, petrol is Rs 107.78 and diesel is Rs 99.56 per liter.