Petrol-Diesel Price: After four years, state-owned oil companies have increased the price of petrol and diesel by ₹3. However, industry sources say that further increases in petrol and diesel prices are possible in the coming days. This is because state-owned oil companies are incurring losses due to rising crude oil prices.
The crisis in West Asia that has been ongoing for the past two and a half months has led to a significant increase in the price of crude oil. It reached $130 per barrel and is still consistently above $100. This has resulted in a monthly loss for state-owned oil companies of ₹30,000 crore. On Friday, the government increased the price of petrol and diesel by ₹3 per liter. This was the first increase in petrol and diesel prices in four years. However, further increases are imminent as state-owned oil companies are incurring significant losses.
Crude oil prices have risen by more than 50 percent since the February 28th attack on Iran by the US and Israel. Industry sources say that Friday's increase will not compensate for the losses incurred by oil companies. Therefore, further increases in petrol and diesel prices are likely in the coming days. A senior industry official said that despite the price increase, petrol is still incurring a loss of Rs 11 per liter and diesel Rs 39 per liter.
How much is the loss?
The Oil Game
State-owned oil companies lose ₹11 per liter of petrol.
These companies lose around ₹39 per liter of diesel.
Crude oil prices have risen 50 percent due to the Iran war.
It has remained above $100 per barrel for several days.
Windfall Gain Tax on Petrol
Meanwhile, the government has imposed a windfall gain tax of ₹3 per liter on petrol exports, while reducing the tax on diesel to ₹16.5 per liter and on aviation turbine fuel (ATF) to ₹16 per liter. The new rates are effective today, May 16. The Finance Ministry said in a notification that the road and infrastructure cess on petrol and diesel exports will be zero. The windfall gain tax was imposed to increase domestic fuel availability during the US-Israel and Iran wars.
Furthermore, there has been no change in the existing duty rates on petrol and diesel approved for domestic consumption. A Special Additional Excise Duty (SAED) of ₹3 per liter has been imposed on petrol for the first time since the beginning of the West Asia crisis. The duty on export of diesel has been reduced from ₹23 per liter to ₹16.5 per liter, and the duty on aviation fuel has been reduced from ₹33 per liter to ₹16 per liter.
Furthermore, there has been no change in the existing duty rates on petrol and diesel approved for domestic consumption. A Special Additional Excise Duty (SAED) of ₹3 per liter has been imposed on petrol for the first time since the beginning of the West Asia crisis. The duty on export of diesel has been reduced from ₹23 per liter to ₹16.5 per liter, and the duty on aviation fuel has been reduced from ₹33 per liter to ₹16 per liter.