Petrol, diesel prices go up as Centre raises tax in Patna

PATNA: Petrol and diesel prices in the city rose by Rs 2.34 and Rs 2.33 per litre, respectively, on Saturday a day after Union finance minister Nirmala Sitharaman announced increase in excise duty and cess on fuel products in her Budget speech.
While prices of petrol increased from Rs 74.66 on Friday to Rs 77 per litre on Saturday, diesel prices went up in the city from Rs 67.63 to Rs 69.96 a litre.Speed petrol, on the other hand, was sold at Rs 80.11 per litre on Saturday against Rs 77.77 per litre on Friday.
An executive at a Bharat Petroleum filing station near Gandhi Maidan said the tax, which has come in the form of a cess, may further increase fuel prices.
Prabhat Kumar Sinha, president of Bihar Petroleum Dealers’ Association (BPDA), said the increase in petrol and diesel prices was not natural. “Natural increase and decrease in fuel prices is influenced by international market price of crude oil. The latest increase is because of the increase in excise duty and cess on petrol and diesel by Re 1. Addition of state taxes further increased the prices of petrol and diesel,” he said.
D M Diwakar, an economist and professor at A N Sinha Institute of Social Studies, said the hike in petro prices would have a cascading effect on the economy. “Public transportation will become costlier and prices of essential commodities will also rise as a result of fuel price hike. It will have a direct impact on lower earning group and middle-class families. If the higher prices last long, it will have an inflationary effect,” Diwakar added.
He added the Centre should not have increased excise duty and cess on fuel products at a time when the prices of crude oil are falling across the world.
Secretary of Patna Zila Autorickshaw Chalak Sangh Ranjeet Kumar said they will hold a meeting on Sunday (July 7) to discuss the issue. “We will plan out whether the auto-rickshaw drivers will strike against the Centre’s decision or hike the fare,” he said.