Fuel prices fell for the fifth consecutive day on Monday, with petrol at Rs 76.13 per litre and diesel at Rs 68.10 per litre in Mumbai.
Oil prices, however, rose on Monday, extending gains from Friday when producer club OPEC and some non-affiliated producers agreed on a supply cut of 1.2 million barrels per day (bpd) from January.
As per the country's dynamic pricing mechanism, the domestic fuel prices depend upon international fuel prices on a 15-day average and the value of the rupee.
The slide in domestic fuel prices comes in line with the recent decline in crude oil prices due to high supplies. Global crude oil prices have lost nearly 30 percent from the peak of $86.70 a barrel hit on October 3.
Retail pump price is calculated after adding central excise duty, dealers commission and VAT to the base price. While excise duty is fixed at Rs 17.98 per litre in case of petrol and Rs 13.83 a litre in diesel and do not change with any variation in base price, the incidence of VAT in most states changes as the levy is ad valorem or a percentage of the total of the base price plus central excise duty.
(With inputs from the agencies)
According to the Indian Oil Corp data, petrol prices in Kolkata, New Delhi and Chennai were at Rs 72.60 per litre, Rs 70.55 per litre and Rs 73.18 per litre, respectively, while diesel stood at Rs 66.82 a litre in Kolkata, Rs 65.09 a litre in New Delhi and Rs 68.70 a litre in Chennai.
Oil prices, however, rose on Monday, extending gains from Friday when producer club OPEC and some non-affiliated producers agreed on a supply cut of 1.2 million barrels per day (bpd) from January.
As per the country's dynamic pricing mechanism, the domestic fuel prices depend upon international fuel prices on a 15-day average and the value of the rupee.
The slide in domestic fuel prices comes in line with the recent decline in crude oil prices due to high supplies. Global crude oil prices have lost nearly 30 percent from the peak of $86.70 a barrel hit on October 3.
Retail pump price is calculated after adding central excise duty, dealers commission and VAT to the base price. While excise duty is fixed at Rs 17.98 per litre in case of petrol and Rs 13.83 a litre in diesel and do not change with any variation in base price, the incidence of VAT in most states changes as the levy is ad valorem or a percentage of the total of the base price plus central excise duty.
(With inputs from the agencies)
First Published: Dec 10, 2018 9:39 AM IST
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