With a hike of 35 paise on October 20, prices of diesel breached the psychological Rs 100-a-litre mark in three districts of Nagaland. Petrol was also retailing at a record high across the State on October 20. (Morung Photo | For representational purpose only)
Morung Express News
Dimapur | October 20
With a hike of 35 paise on October 20 after a two-day break, prices of diesel have now breached the psychological Rs 100-a-litre mark in three districts of Nagaland and is selling at its highest level.
With Wednesday’s hike, a litre of diesel increased from Rs 99.73 on October 19 to Rs 100.08 on October 20. In Nagaland, diesel and petrol are most expensive in Tuensang.
Diesel also crossed the Rs 100 per litre mark in two other districts on Wednesday and it was retailing at Rs 100.05 in Kiphire and exactly at Rs 100-a-litre in Noklak, according to the fuel prices in Indian Oil Corporation Limited (IOCL) outlets across Nagaland on IndianOil One App.
Meanwhile, in five other districts – Mon, Phek, Zunheboto (Satakha), Longleng and Mokokchung, diesel was hovering near the Rs 100-a-litre threshold on October 20. In the State’s capital Kohima, it was retailing at Rs 97.88 per litre.
Fuel is ‘cheapest’ in Dimapur and on Wednesday, it was retailing for Rs 97.07 per litre.
Price movements
The breaching of the Rs 100-a-litre mark came exactly on the 117th day after the other fuel, petrol reached the threshold, according to database of fuel prices maintained by The Morung Express based on IndianOil One app.
The first two districts to cross the mark in Nagaland were Kiphire and Tuensang on June 26. Mon, Phek and Zunheboto (Satakha) reached the threshold on July 2, followed by Longleng and Mokokchung on July 4. Wokha and Kohima joined the ‘100-a-litre club’ on July 5 and July 8 respectively while Peren crossed the threshold on July 12. Dimapur was the last to reach the mark on July 15.
Meanwhile, with prices rising by 33-34 paise per litre across the State, petrol was also retailing at a record high across Nagaland on October 20.
In Tuensang and Kiphire, it was retailing at record Rs 107.97 and Rs 107.90 respectively on Wednesday while in the State capital Kohima, it was Rs 105.59.
In Dimapur, a litre of petrol was selling at Rs 105.59 on the same day, the lowest in the State.
According to the IANS news agency, petrol and diesel prices on Wednesday rallied to their highest ever levels across the country, as fuel rates were hiked again by 35 paise-a-litre after a two-day pause.
Diesel prices have increased on 20 out of the last 26 days while petrol prices have risen on 17 of the previous 22 days, it said.
Who determines fuel prices in India?
Before 2014, the prices of fuel were regulated by the government. However the government deregulated the pricing of petrol in 2010 and diesel in 2014.
Since then, the state-run oil marketing companies (OMCs) determine the prices of these products base on several factors.
According to the Union Ministry of Petroleum and Gas, the retail prices of fuel are fixed by the OMCs on the basis of 15 days rolling average price of petrol and diesel in the international market while there is also an impact by the rupee-dollar exchange rates.
As a result, the prices are affected by the volatility of prices in global oil markets, particularly the Brent crude or Brent blend, one of three major oil benchmarks used by those trading oil contracts, futures and derivatives.
As per the October 20 IANS report, crude prices have been on a surge rising over a three-year high level of over $85 a barrel now. It had softened a bit falling below $85 a barrel now.
Others factors determine the final retail prices including central and state taxes including cess, dealer’s commission, and freight charges.
As a result, prices differ across states in India, and even there are regional disparities within a state. The price differences across Nagaland can also be attributed to these factors.
In Nagaland, the current tax rates on diesel, petrol and other motor spirits in Nagaland are as follows:
• Diesel: 16.50% or Rs 10.51 per litre, whichever is higher.
• Petrol and other motor spirits: 25% or Rs 16.04 per litre, whichever is higher.
