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Excise duty on petrol, diesel cut by Rs. 2 per litre

NDTV logo NDTV 03-10-2017

© Getty In a relief to consumers from the spiralling fuel prices, the government late on Tuesday evening slashed excise duty petrol and diesel by 2 per litre. The decision would cost the government Rs. 26,000 crore annually while for the remaining part of the current fiscal year, it will lead to a loss of Rs. 13,000 crore, said the Ministry of Finance. “The Government of India has decided to reduce the Basic Excise Duty rate on Petrol and Diesel [both branded and unbranded] by Rs. 2 per litre with effect from 4th October, 2017. The revenue loss on account of these reductions in excise duty is about Rs. 26,000 crore in a full year, and about Rs. 13000 crore during the remaining part of the current financial year,” said an official press release.

The government said that with this decision, it aims to protect the interest of common man.

Earlier, due to an increase in the international prices of petrol and diesel over the past few weeks, the retail selling prices (RSP) of the commodities in Delhi had risen to Rs. 70.83/litre and Rs. 59.07/litre respectively, as on October 2, 2017.

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On petrol, the government currently levies excise duties totalling Rs. 21.48 per litre while that on diesel it is Rs. 17.33 per litre. 

The government, which had raised duties three years back to take away gains arising from plummeting global oil prices, has been criticised for not cutting excise duty despite a sustained rise in fuel prices since early July.

Petrol price has jumped by Rs. 7.8 per litre since July 4, while diesel rates have touched an all-time high after rates went up by Rs. 5.7 per litre.

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Petroleum Minister Dharmendra Pradhan had previously said that it cannot change fuel prices on a knee-jerk basis. "The government cannot change fuel pricing on a knee-jerk basis. The government will not interfere in the day-to-day functioning of the OMCs... for the last three years, the pricing mechanism has been linked to the market," he had said in September. 

The government, in June, implemented the policy of daily fuel price revision by oil-marketing companies.

(With Agency Inputs)

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