New Delhi, May, 26: The prices of petrol and diesel remained steady for the fourth consecutive day on Thursday, May 26, 2022. Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by 8 per litre, and 6 rupees per litre on diesel on Saturday.
The price of petrol in Delhi stands at ₹96.72 per litre while cost of diesel is ₹89.62, as per the data available on Indian Oil Corporation website. In Gurugram, one litre of petrol will cost ₹97.81 and ₹90.05 for one litre of diesel.
In Mumbai, petrol currently costs ₹111.35, while diesel is retailing at ₹97.28, following the reduction of excise duty and VAT. In Chennai, the petrol and diesel prices are at ₹102.65 and ₹94.24 per litre. In Kolkata, the price of petrol is ₹106.03 and diesel is ₹92.76 . In Bengaluru, one litre of petrol will cost ₹101.94 and one litre of diesel will cost ₹87.89.
It is important to note that the rates of both the key auto fuels were sharply reduced on Sunday after Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by 8 per litre, and 6 rupees per litre on diesel on Saturday. Following the government’s decision petrol price was cut by ₹8.69 per litre while diesel was reduced by ₹7.05 in the national capital on Sunday.
Additionally, the Maharashtra administration on Sunday reduced the Value-added tax (VAT) on petrol and diesel. VAT on petrol was reduced by ₹2.08 per litre and ₹1.44 per litre has been reduced on diesel.
Meanwhile, Bharat Petroleum Corporation Ltd (BPCL) on Wednesday reported a 82% decline in net profit in the quarter ended March 2022 as the firm held fuel prices despite rise in cost. Net profit of ₹2,130.53 crore was reported in the January-March period as compared with ₹11,940.13 crore, according to a regulatory filing.
Revenue from operations rose 25% to ₹1.23 lakh crore on higher oil prices but losses on petrol, diesel and domestic LPG sales dented the financials. BPCL and other public sector oil companies held petrol and diesel prices for a record duration despite a surge in the cost of raw materials (crude oil) to a 14-year high. These companies started raising fuel prices March 22 onwards but it was ceased within 16 days.
Even after ₹10 per litre increase in petrol and diesel prices between March 22 and April 6, the oil companies continued to make losses as international crude oil prices remained above USD 100 per barrel.
(With inputs from agencies)