03 February 2023: No Change Seen In Fuel Price; Government To Invest Rs 30,000 Crore To Support Oil Companies

03 February 2023: The fuel price remained unchanged on 03 February 2023 i.e. Friday.

Ahead of the Union budget 2023-24, the government proposes to give Rs 30,000 crore to state-run oil refiner-cum-fuel retailers in 2023-24 as “capital support,” According to the official, the initiative would be spent on building low-carbon infrastructure but industry analysts described as an indirect subsidy to their losses on fuel sales.

The government officials explained the Budget provision saying the companies have to invest in technology to reduce their carbon footprint, including shifting to green hydrogen in their refineries and expanding the blending facilities for producing 20% ethanol blending. The money is meant to support the transition to low-carbon processes

Reduction in Excise Duty

On 21^st May 2022, the last country-wide fluctuations in oil prices were observed as the finance minister, Nirmala Sitharaman reduced the excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre across the country.

Fuel Rates

Chennai: Petrol rate: Rs 102.63 per litre, Diesel rate: Rs 94.24 per litre

Kolkata: Petrol rate today: Rs 106.03 per litre, Diesel rate: Rs 92.76 per litre

Mumbai: Petrol rate: Rs 106.31 per litre, Diesel rate: Rs 94.27 per litre

Delhi: Petrol rate: Rs 96.72 per litre, Diesel rate: Rs 89.62 per litre

Bangalore: Petrol rate: Rs 101.94 per litre, Diesel rate: Rs 87.89 per litre

Lucknow: Petrol rate: Rs 96.57 per litre, Diesel rate: Rs 89.76 per litre

Noida: Petrol rate: Rs 96.79 per litre, Diesel rate: Rs 89.96 per litre

Gurugram: Petrol rate: Rs 97.18 per litre, Diesel rate: Rs 90.05 per litre

Chandigarh: Petrol rate: Rs 96.20 per litre, Diesel rate: Rs 84.26 per litre

Also Read: 02 February 2023: Fuel Prices Remain Unchanged Today; Jet Fuel Rates Hike By 4 Per Cent

Value-Added Tax On Oil Rates

Any changes in petrol and diesel costs are implemented from 6 am every day. The prices of petrol and diesel change state by state, depending upon various criteria such as Value Added Tax (VAT), freight charges, local taxes, etc. Public sector OMCs including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise their prices daily in line with international benchmark prices and forex rates.

Since the central government reduced excise duty, some states have reduced VAT prices on fuels.

On August 24, Meghalaya increased the VAT on the fuel price resulting in petrol costing Rs 96.83 per litre in Shillong, whereas, diesel is at Rs 84.72 per litre. The city has been the last to change the fuel rates.

On January 8, 2023, the Himachal Pradesh government increased the Value-Added Tax (VAT) on diesel by Rs 3 per litre. On the other hand, the government reduced the taxes on petrol by 0.55 paise. Retail petrol and diesel prices vary from state to state, depending on several factors like freight charges, Value-Added Tax (VAT), local taxes, etc.