Diesel prices hit an all-time high as oil prices continue to rise

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New Delhi, Apr 19: Diesel prices spiked to an all-time high costing Rs 65.27 in Delhi and Rs 69.50 in Mumbai on Thursday. The prices of diesel and petrol have been on the rise consistently since the Narendra Modi-led government introduced dynamic pricing for fuel in June last year.
Under the scheme, the price of fuel is revised daily on the basis of the global price of crude oil and the rupee/dollar exchange rate.
The opposition has been constantly slamming the BJP government at the Centre for its inefficacy to control rising fuel prices. Earlier, Rahul Gandhi had even accused Narendra Modi of “misinforming people” saying that the middle class is bearing the brunt of rising fuel prices at the behest of the BJP government.
The price payable by the consumer comprises of Excise duty and VAT which is different for different states.
With crude oil prices have been rising in the international market, the Oil Ministry had recommended reduction in excise duty on petrol and diesel in order to cushion the impact on the end consumer.
However, Finance Minister announced a rejig of duties during his Budget speech in the parliament in February this year. Accordingly, the government cut basic duty of Rs 2 per litre on fuels and abolished additional excise duty of Rs 6 per litre; however it nullified that cut by levying road and infrastructure cess of Rs 8 per litre.