After Rajasthan, Meghalaya and Assam, another state that has cut taxes on petrol and diesel is West Bengal. This was done on February 21.

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Bengal has cut taxes by one rupee on both petrol and diesel.

Rajasthan was the first state to cut 2 percent VAT in January. It must be noted here that the level of state taxes was the highest in Rajasthan.

Also read: Petrol, diesel prices remain unchanged for second day in a row

The highest relief amongst the states that cut taxes was Meghalaya which cut taxes in the range of Rs 7.10 per litre on diesel and Rs 7.40 per litre on petrol, followed by Assam which cut Rs 5 additional tax on fuel.

Now let’s take a look at the price breakup of petrol and diesel:

The base price as of February 16 for petrol was at Rs 31.82 per litre and on diesel Rs 33.46 per litre. The next big chunk part of the fuel price is the central excise duty which is at Rs 32.90 on petrol and Rs 31.80 per litre on diesel.

Price break up of Petrol and Diesel in Delhi as of February 2021

Let's take a quick look at the way crude performed.

Indian crude basket was at its lowest this fiscal in April 2020 at about $ 20 per barrel. However, In January 2021, the Indian basket rose to $54.79, almost 10 dollars higher than what it was in the month of August.

Indian Crude Basket Movement

Meanwhile, the centre has been maintaining that it needs to jointly address the issue of duties. We heard FM Nirmala Sitharaman this weekend making a call for a joint effort on this.

On his part, Oil Minister Dharmendra Pradhan has also appealed to OPEC keep in mind the adverse impact of increasing Crude prices on the global recovery.

First Published:Feb 22, 2021 12:17 PM IST