It's 85.57 per liter Petrol Price in Nagpur after today's hike

File Image for Representational Purposes

File Image for Representational Purposes

There has been a national outrage against rising costs with many demanding either a cut in excise tax or for petrol and diesel prices to be brought under GST. Diesel costs, as per the nation's biggest fuel retailer, were at Rs. 68.53 for each liter in Delhi, Rs. 71.08 for each liter in Kolkata, Rs. 72.96 for every liter in Mumbai and Rs. 72.35 for every liter in Chennai.

In fact, over 50% of petrol's retail price constitutes taxes and dealer commissions while for diesel, the percentage is over 40%. With fuel prices going up for the eleventh continuous day, demands to cut excise duty or state Value-Added Tax have grown louder.

Pump prices of petrol and diesel in India surged to a record high on Thursday, raising pressure on the government to find a solution to provide relief to consumers without taking a hit on its finances.

The petrol and diesel soared by 30 and 20 paise per litre respectively. While the rise in fortune for the OMCs in the past four years was mainly on account of lower crude oil prices, the common man was left out from the party as the government had hiked tax levies on fuel on several occasions. "The central government is with Maharashtra like Himalaya", Fadnavis said while stressing that the center is willing to help the state. The official said the exact price cap hasn't been determined as ONGC has asked for a higher price to fund its capital expenditures for the next two years.

The government is seriously considering the matter of rising oil prices and is looking to resolve the issue in the coming days. "We understand that there is a compelling need for a long-term solution, structured solution", he said. "In view of the uncertainty in the crude prices globally, a new sense of urgency has developed".

But the risk of them (oil producing companies) being asked to once again bear a part of the subsidy is looming with the recent rise in global oil rates, Moody's said in a report. State sales tax or VAT varies from state to state.

The Narendra Modi-led government cut the excise duty on fuels by Rs 2 a litre last October.

Indian petrol and diesel prices are benchmarked against Singapore gasoline prices and Arab Gulf diesel prices, which mostly track movements in crude oil prices. "The government is involved in this whole process, including the concern (about rise in prices) and also the uncertainty", he told reporters here.

Another option before the government is to convince the states on bringing petrol and diesel under the GST regime.

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