NEW DELHI: The government on Saturday jacked up fuel taxes by Rs 3 per litre to soak up much of the gains from a 30% drop in global oil prices and blotting hopes of petrol and diesel prices falling rapidly over the next few days as the impact of Monday’s price crash begins to hit home.
But still, pump prices declined marginally, with petrol dropping below Rs 70 per litre-mark in Delhi for the first time since January 14, 2019, as softer crude offset the impact of higher levies. In spite of the elevated levies, petrol became cheaper by 13 paise a litre and diesel by 16 paise as state-run fuel retailers passed on the amount of gain from lower oil and product prices after adjusting the revised levies.
Oil market projections indicate that even after increase in tax, pump prices are likely to hover around current levels and move within a band, unless oil swings either ways or the rupee weakens further against the Greenback.
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