Oil marketing companies have benefited from this mechanism as they do not have to keep the oil prices static for up to 15 days even if the crude oil prices starts rising rapidly.
Petrol prices fell by Rs 3.45 per litre in just a span of 13 days, with the oil companies cutting prices or keeping it unchanged for 12 days in a row. Then, it started rising marginally on June 28-29. It has been in the upward trend since then. Petrol price in Delhi has risen by Rs 5.42 per litre to Rs 68.88 per litre from Jun 28 to August 24, 2017.
The reason for this increase in petrol prices is the rise in crude oil prices in the international markets. After the implementation of GST, there are still some Central and state taxes affecting the prices as petrol and diesel have been kept out of the ambit of the GST.
Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.
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