Diesel prices down by nearly Rs 17; petrol over Rs 11 since Nov 3
Morung Express News
Dimapur | November 5
Fuel prices fell further across Nagaland on November 5 as an additional Rs 7 cut in the Value Added Tax (VAT) announced by the State Government took effect.
The Nagaland Government’s announcement came on heels of the Union Government reducing Central Excise Duty on petrol and diesel by Rs 5 and Rs 10 respectively, effective from November 4 and urging the States to “commensurately reduce VAT on petrol and diesel to give relief to consumers.”
While the notification from State’s Finance Department informed that cuts in VAT would come “into force with effect from date of issue” of the notification, changes were reflected only on November 5.
Nevertheless, the combined impact of the cuts in Central Excise Duty and State’s VAT has brought down cost of petrol nearly Rs 12 per litre across Nagaland from the prevailing prices on November 3.
For instance, while petrol was retailing at Rs 108.34 per litre in Dimapur on November 3, it was available for Rs 96.92 on November 5, signifying a reduction of Rs 11.48.
Likewise, in Tuensang, a litre of petrol was selling for Rs 112.01 on November 3, but fell by Rs 11.43 to retail at Rs 100.58 on November 5. The few paise differences to combine cut of Rs 12 per litre may be due changes in regular pricing, independent of the cut thereafter.
Despite the double cuts, petrol prices in Nagaland only reverted to June last week level, when some districts breached the Rs 100-a-litre mark. Tuensang and Kiphire were the first districts to cross the threshold on June 27. It reflects the pace at which fuel prices are rising in the recent times.
However, the combined tax cuts had most significant impact on diesel, which decreased by nearly Rs 17 per litre across the State from the November 3 prices.
In Dimapur, diesel, which was retailing for Rs 100.60 per litre on November 3, was available for Rs 83.68 on November 5, denoting a reduction of Rs 16.92 per litre. During the same period, it decreased from Rs 103.84 in Tuensang to Rs 86.92 litre.
Accordingly, diesel prices in Nagaland rolled back to February 23 status this year, when it was retailing at Rs 83.56 per litre in Dimapur. Between February 23 and November 3, diesel cost increased by over Rs 17.04 across the State.
Reduction in diesel prices has the most significant impact on the general price level as most products and goods that people use on a daily basis are transported by diesel-run vehicles. Further, most heavy vehicles like buses, trucks, tractors, construction vehicles etc also have diesel engines.
Diesel prices crossed the Rs 100-a-litre threshold across Nagaland on October 31.
The rates pertain to prices in the Indian Oil Corporation Limited’s (IOCL) outlets based on the IndianOil One App and the rates might be higher in other PSU and private outlets or in unofficial makeshift retail stores across various locations in the State.
Fuel prices are revised daily by public sector oil marketing companies depending on both domestic and global factors.
The external factors such as the 15 days rolling average price of oil in the international market and the rupee-dollar exchange rate determines the base price.
Internally, the final retail prices are inclusive of price charged to dealers (based price + freight etc), excise duty, average dealer commission, and VAT (including VAT on Dealer Commission).
These rates differ across states in India, and even within a State, it varies from one location to another.
(Correction: In some earlier reports, the date of petrol first crossing the Rs 100-a-litre threshold is given as June 26; it should be corrected as June 27, 2021)
