Despite Cut, India’s Fuel Rates 2.5 Times Of Singapore Benchmark: Moody’s

Despite Cut, India’s Fuel Rates 2.5 Times Of Singapore Benchmark: Moody’s

A cut of up to Rs 2.5 per litre in petrol and diesel prices notwithstanding, auto fuel rates in India are about twice the Singapore benchmark with taxes accounting for nearly half the current rates, Moody’s Investors Service said on Friday.

The government this week cut excise duty by Rs 2 per litre as part of efforts to reduce the prices of petrol and diesel. Petrol in Delhi now costs Rs 68.38 a litre, down from Rs 70.88. A litre of diesel now comes for Rs 56.89 as against Rs 59.14 previously.

“The retail selling prices of petrol and diesel in India even after the reduction is approximately 2.5 and 2 times that of Singapore benchmark prices respectively. As much as 42-50 per cent of the retail selling prices will continue to go to the government as taxes,” it said. Read More…

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