Fuel prices inch towards record high in Nagaland

May 28, 2021 42 Views No Comment

Morung Express News
Dimapur | May 28

Retail price of regular petrol in Nagaland State capital Kohima was hovering at Rs 93.71 a litre as Oil marketing companies (OMCs) increased fuel prices on Thursday after a day’s break.

This is just a few paise away from the record high of Rs 93.93 on February 22, 2021 before the State Government announced reduction in tax rate for petrol and other motor spirits from 29.80% to 25% per litre (P/L). Concurrently, there was negligible tax cut of 17.50% to 16.50% P/L or 1% on diesel.

The tax cut effective from midnight of February 22 then translated to reduction of over Rs 3 P/L for petrol and just around 0.57 paisa P/L for diesel the next day.

Meanwhile, diesel price was retailing at record high Rs 87.47 as on May 27 in Kohima.

Elsewhere, fuel was costliest in Tuensang with petrol retailing at Rs 95.58 a litre and diesel at Rs 89.58 a litre, as per IndianOil One, the official app of the Indian Oil Corporation Ltd on fuel related matters.

Kiphire followed next with Rs 89.44 and Rs 95.49 P/L respectively for diesel and petrol. The third costliest was in Noklak where petrol was retailing at Rs 95.35 P/L and diesel at Rs 89.38 P/L.

Fuel was cheapest in commercial capital Dimapur at Rs 86.71 a litre for diesel and Rs 92.46 a litre for petrol.

OMCs revise fuel prices daily based on global crude prices and exchange rate of currency. Besides, prices are determined by central and state tax policy, dealer’s commissions as well as other related charges, including transportation.

Independent of the price revision by OMCs and global trends, fuel prices in Nagaland have been fluctuating considerably in the last one year with various fiscal policies by the State Government.

For instance, from the midnight of April 28, 2020, the State Government imposed a COVID-19 Cess of Rs 5 per litre on diesel and Rs 6 per litre will be levied on Petrol and other motor spirit. However, the cess was revoked on September 23 after demands from various quarters.

However, petrol, diesel and other motor spirit in Nagaland got costlier from midnight of November 11, 2021 following another hike in tax rates announced by the State Government.

Thereafter, as the fuel prices across the country maintained an upward trend and as price inched towards Rs 94 a litre for petrol in February this year, the State Government announced reduction in tax rates of fuel.

According to IANS news agency, the OMCs have been following the trend of raising the fuel prices on few days while keeping it unchanged on others for the past couple of weeks. Fuel price has now increased and remained unchanged on 14 and 13 days respectively till May 27, it said.

With Thursday’s hike, cities like Mumbai was just a day away from crossing Rs 100 a litre-mark, its highest level ever, while in Jaipur regular petrol is now being sold at Rs 100.17 P/L, it said.

Similar is the case with several towns and cities in Rajasthan, Madhya Pradesh and Maharashtra where petrol price has crossed the Rs 100 per litre-mark much before the Thursday’s price rise, it added.

With global crude prices rising again to around $69 a barrel mark, OMCs may have to keep revising prices upwards for some more time, it added.

Source: https://morungexpress.com/fuel-prices-inch-towards-record-high-in-nagaland