Oil firms to hike petrol, diesel prices

Why is it in the news ?
  • The State-owned oil marketing companies (OMCs) are set to increase the prices of petrol and diesel with effect from April 2020.
  • The increase is said to recover over ₹30,000 crore of investments made by these firms in upgrading their refineries to meet the BS-VI standards.
More in the news
    • State-owned OMCs have so far invested over ₹30,000 crore in upgrading their refineries to produce cleaner BS-VI fuels.
    • The government, in 2016 had decided to meet the global best practices and leapfrog to BS-VI, skipping BS-V norms.
    • BS-VI emission norms are equivalent to Euro VI, to be effective from April 1, 2020.
    • Pricing of Petrol:
      (1) Currently, the price build-up of petrol comprises the base price of ₹32.81 and freight cost of ₹0.35 per litre.
      (2) The price charged to dealers (excluding excise duty and VAT) is ₹33.16.
      (3) With excise duty at ₹19.98 per litre and VAT (including VAT on dealer commission) of ₹15.30 per litre, the retail selling price at Delhi is rounded off to ₹71.99 per litre.
    Source
    The Hindu.




    Posted by Jawwad Kazi on 28th Aug 2019
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