The move comes at a time when India is staring at the highest ever tax collection shortfall, as corporate and income tax collection for this fiscal year is set to fall for the first time in at least two decades and the goods and services tax revenue could see a gaping shortfall.
The August’s new price of a litre of Super 98 petrol will be sold at Dhs 4.03 per litre in all fuel stations.
India’s Ministry of Petroleum and Natural Gas on Tuesday notified liberalised guidelines for bulk and retail marketing of petrol and diesel, offering new opportunities for foreign oil companies, including those in the Gulf, to enter this lucrative energy business.
Fuel prices in the UAE dropped by 5-10 fils for September compared to August.
India’s finance ministry is considering cutting excise duties on petrol and diesel to cushion the impact of record high domestic prices, three government officials close to the discussions said.
The sources said that the government is expected to hike prices of petroleum products by 6 Pakistani rupees per litre from January 16.
Prices will rise by 20% starting on Friday, causing long lines to form at filling stations as the news spread. The new price of petrol will be Rs179.86 per litre and diesel will be Rs174.15, said Ismail in a tweet.
The October’s new price of a litre of Super 98 petrol will be sold at Dhs 3.03 per litre in all fuel stations.
Power and Energy Minister Kanchana Wijesekera said in a message on Twitter that petrol prices would increase by 20%-24% while diesel prices would rise by 35%-38% with immediate effect.