Petrol, diesel prices in Hyderabad fall sharply

Hyderabad: Petrol and diesel prices in Hyderabad fell on Thursday after the centre cut excise duty on fuel.

The prices of petrol and diesel in Hyderabad fell to Rs. 108.2 and Rs. 94.62 respectively. On November 3, the petrol and diesel rates in the city were Rs.114.49 and Rs.107.40 per litre.

In Delhi, the price of petrol fell to Rs 103.97 a litre on Thursday from the previous day’s level of Rs 110.04 a litre. The diesel prices fell by a bigger margin to Rs 86.67 a litre in the city from the earlier level of Rs 98.42.

Mumbai too witnessed the fall in fuel prices. The petrol prices fell to Rs 109.98 a litre from Rs 115.85, while the diesel rate fell to Rs 94.14 a litre from Rs 106.62.

Excise and VAT on petrol and diesel

The fuel prices fell between Rs 5-10 per litre across the country after the centre on Wednesday announced that the excise duty will be reduced by Rs 5 for petrol and Rs 10 for diesel from November 4. The decision was taken to contain the surging rates of fuel.

The excise duty on petrol and diesel was Rs 32.9 and Rs 31.8 per litre respectively. It was raised by Rs 13 and Rs 16 per litre on petrol and diesel between March 2020 and May 2020.

Apart from reducing the excise duty, the centre has urged the state government to reduce Value-Added Tax (VAT) on petrol and diesel.

Petrol, diesel prices in India depend on international rates

As India depends on the import of fuel, the prices of petrol and diesel in the country are influenced by international rates.  

However, the centre’s excise duty and the state government’s VAT are the major portions of the fuel prices.

The prices of petrol and diesel are not the same across the country as state governments levy different rates of VAT.