Budget 2018: Petrol, diesel prices hit all-time high on Budget day

The Oil and Gas Regulatory Authority had recommended a double-digit increase in pricesof HSD and other petroleum products

The Oil and Gas Regulatory Authority had recommended a double-digit increase in pricesof HSD and other petroleum products

Finance Minister Arun Jaitley will today present the Union Budget 2018, last full budget of the current Narendra Modi government.

The cost of both diesel and petrol is now at its highest since late 2014, new data from RAC Fuel Watch shows. Excise duty is seen as a the main reason for high prices of petrol and diesel. The budget has again brought the boom in the life of farmers and the unprivileged society just like the earlier year.

The BJP-led NDA government had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but cut the tax only once in October past year by Rs 2 per litre. "This is jumlanomics. The announcement to cut excise duty on petrol was fraudulent as the government has silently hiked the cess on fuel", said CPM chief Sitaram Yechury.

The Union Budget 2018-2019 has cut basic excise duty on petrol and diesel by Rs 2 per litre but the move will not result in reduction in fuel prices for consumers. "So, given that it is free pricing now, any projection on prices of petrol and diesel will be hard", Raju Kumar, tax partner, EY, said.

As per the reports, the prices of petrol and diesel are continuously rising for about two months under the dynamic pricing system that has started from June 2017.

This marks an increase of 5p per litre for diesel and 4p a litre for petrol since October past year.

Global and domestic factors have spiked the fuel prices. However, that made no difference to the rising petrol and diesel prices as this Rs 8 amount was converted to "road cess" on fuel, thereby, making no change in the price of petrol and diesel for the consumer effectively.

Since then prices are revised on daily basis.

Diesel prices were only slightly better at Rs 64.11 in Delhi, Rs 66.78 in Kolkata, Rs 67.62 in Chennai and Rs 68.27 in Mumbai.

Earlier, the Finance Ministry had announced a Rs 2 per litre cut on petrol and diesel with effect from October 4, 2017, to cushion the impact of rising global prices of these petro products.

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