Facing all round severe criticism, the government on Tuesday night slashed the excise duty on petrol and diesel by Rs 2 per litre -- effective Wednesday -- which has brought down the retail selling prices of the two fuels.
According to the government, the decision to reduce the "Basic Excise Duty" rate on petrol and diesel has been taken to cushion the impact of rise in international crude prices.
The decision will cost the exchequer Rs 13,000 crore during the remaining part of the fiscal and Rs 26,000 crore for the full year.
"This measure would help reducing the prices of petrol and diesel and giving relief to consumers," the Ministry said in a statement.
In case of diesel, excise after the cut is Rs 15.33 per litre and that of petrol Rs 19.48.
"This decision has been taken by the government in order to cushion the impact of rising international prices of crude petroleum oil and petrol and diesel on retail sale prices of petrol and diesel, as well as to protect the interest of common man," the statement said.
"The revenue loss on account of these reductions in excise duty is about Rs 26,000 crore in a full year, and about Rs 13,000 crore during the remaining part of the current financial year," it said.
Earlier, due to the increase in the international prices of petrol and diesel during the last few weeks, the retail selling prices of petrol and diesel in Delhi have risen to Rs 70.83 a litre and Rs 59.07 per litre, respectively, as on 2 October.
This rise in the prices of petrol and diesel is also reflected in WPI inflation, which has increased to 3.24 percent for the month of August 2017, as compared to 1.88 percent for the month of July 2017, which prompted the government to act swiftly, it added.
As per the prices available on IOCL website, steepest cut in prices has been in Chennai -- Rs 2.63 on petrol and Rs 2.41 on diesel per litre. After the reduction, petrol and diesel continue to be costlier in Mumbai at Rs 77.51 per litre and Rs 60.43 compared with other three metros. Meanwhile, consumers in Delhi enjoy cheaper fuels at Rs 68.38 and Rs 56.89.
|Petrol prices in Rs per litre|
|Oct 03, 2017||70.88||73.62||79.99||73.48|
|Oct 04, 2017||68.38||71.16||77.51||70.85|
|Price cut in Rs||-2.50||-2.46||-2.48||-2.63|
|Diesel prices in Rs per litre|
|Oct 03, 2017||59.14||61.80||62.82||62.30|
|Oct 04, 2017||56.89||59.55||60.43||59.89|
|Price cut in Rs||-2.25||-2.25||-2.39||-2.41|
|Source: IOCL website|
(Data by Kishor Kadam; with inputs from IANS)
Updated Date: Oct 04, 2017 12:56 PM