New Delhi: As crude oil prices gained by about 5% this week, petrol and diesel prices were left unchanged today. Crude oil price had rallied by nearly 10% over Monday’s and Tuesday’s sessions, but has now retraced half of those gains. However, since mid-October crude oil prices are down by about a quarter while petrol and diesel are down by less than 10%.

A litre of petrol now costs ₹ 71.72 in Delhi, ₹ 77.29 in Mumbai, ₹ 74.41 in Chennai and ₹ 73.75 in Kolkata. Diesel, on the other hand, costs ₹ 66.39 in Delhi, ₹ 69.48 in Mumbai, ₹ 70.09 in Chennai and ₹ 68.12 in Kolkata.

The way petrol and diesel prices charts are heading now, it is likely that the two automobile fuels will soon become cheaper in Delhi as compared to adjoining cities of Uttar Pradesh like Noida and Ghaziabad due to difference in state sales tax or VAT.

Delhi levies a VAT of 27 per cent on petrol. The same on diesel is 16.75 per cent plus ₹ 250 per kilolitre air ambience charge. The VAT on petrol in Uttar Pradesh is 23.78 per cent or ₹ 14.41 a litre, whichever is higher. In case of diesel, VAT is 14.05 per cent or ₹ 8.43 a litre, whichever is higher.

In the international market, crude breached $53 a barrel for the first time in almost two weeks after Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman agreed they would cooperate on managing the oil market. But in talks between officials after that meeting, Saudi Arabia argued Russian proposals, which implied Moscow would cut output by a maximum of 150,000 barrels a day, would leave the kingdom shouldering too much of the burden.

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