Brent crude futures were up 8 cents at $53.90 a barrel in the intraday trade.
Fuel rates on Monday were slashed for the fourth straight day across metros by oil marketing companies (OMCs). Petrol was priced at Rs. 69.86 per litre in Delhi, Rs. 71.96 per litre in Kolkata, Rs. 75.48 per litre in Mumbai and Rs. 72.78 per litre in Chennai, according to Indian Oil Corporation (IOC). Diesel rates stood at Rs. 63.83 per litre in Delhi, Rs. 65.59 per litre in Kolkata, Rs. 66.79 per litre in Mumbai and Rs. 67.38 per litre in Chennai.
As per the daily dynamic pricing regime, domestic fuel prices depend on international fuel prices on a 15-day average, besides the value of the rupee. This is because a large proportion of country’s requirement is met through imports.
State-run oil marketing companies Indian Oil, Bharat Petroleum and Hindustan Petroleum revise fuel prices with effect from 6 am on a daily basis. The government allowed revision of fuel rates on a daily basis since mid-June last year to reflect changes in costs instantly.
Hailing the GST Council’s decision to reduce tax rates on several items and services, industry body PHD Chamber of Commerce and Industry, urged policymakers to consider bringing petroleum products under the ambit of indirect tax.
“Considering the volatility in the international crude oil prices, petroleum products should also be considered under the GST to rationalise the impact of indirect taxes by subsuming VAT (Value Added Tax) and excise duties in GST,” the industry body said in a statement quoting Rajeev Talwar, president of the industry body.
International benchmark Brent crude futures edged higher to trade below $54 a barrel in the intraday trade, while crude futures eased by 5 cents to $45.54, reported news agency Reuters. Brent fell 11 per cent last week and hit its lowest since September 2017, while US futures slid to their lowest since July 2017, bringing the decline in the two contracts to 35 percent so far this quarter.
(With agency inputs)