The recent cut in central excise duty on petrol and diesel prices is expected to soften inflationary pressures exerted by rising crude oil prices, the ministry said in its monthly economic report.
As a result, the state will incur a revenue loss of about Rs 100 crore for the next five months from November to March 31, 2022, the deputy chief minister said.
The price of diesel has touched Rs 100 per litre in Bangalore city. There are over 650 bunks that dispense diesel in the city and rural areas around Bangalore.
Shedding the modest price change policy, state-owned fuel retailers have since Wednesday started passing on the larger incidence of cost to consumers.
Telangana Finance Minister Harish Rao wanted people to keep in mind the fate that had befallen the BJP in West Bengal and Tamil Nadu, and said a repeat of the same would be seen in Huzurabad too.
Oil companies revise petrol and diesel rates daily based on the average price of benchmark fuel in the international market in the preceding 15 days, and foreign exchange rates.
Oil companies revise rates of petrol and diesel daily based on the average price of benchmark fuel in the international market in the preceding 15 days, and foreign exchange rates.
Fuel prices rose for the eighth time this month, on Friday, with diesel touching an all-time record high of Rs 90.43/litre.
With crude remaining below USD 65 a barrel, for most part of the last fortnight along with softer product prices, the oil companies decided to break their pause and passed on the benefit to the consum
Petrol and diesel in India have declined by nearly 15 per cent each from the record high levels they had reached in October.
The double-whammy of high fuel cost and low fares necessitated by extreme competition magnified as the rupee depreciated and interest-rates remained high.
As per the data, the fuel was priced at Rs 87.15 in Mumbai, Rs 83.52 in Kolkata and Rs 84.89 per litre in Chennai.
The prices of fuel have been increasing for two straight weeks now burning holes in the pockets of the commoners.