Petrol prices nearly Rs 85 in Mumbai as fuel prices rise for 10th day
With prices of fuel rising for the tenth straight day, there are reports that the government has taken a decision to cut oil prices. However, there is no clarity yet on how it plans to achieve this.
There are reports that the Finance Ministry and the Petroleum Ministry differ on how to do this. It is unclear whether oil companies should reduce prices and take a hit, or whether excise should be lowered.
The second step will lead to a drastic fall in revenue.
On Wednesday, petrol prices were close to Rs 85 in Mumbai, over Rs 80 in in Chennai, and Rs 77 in Delhi.
The opposition parties are putting pressure on the government to cut prices. The BJP has asked states to cut taxes on fuel. Four BJP-ruled states, Madhya Pradesh, Rajasthan and Chhattisgarh, where elections will be held later this year, and Maharashtra, are among those levying high taxes on fuel.
The opposition has accused the government of failing to provide relief to the common man by cutting excise duty.