Govt cuts petrol, diesel prices by Rs 2 a litre, new rates effective from today
Due to the increase in the international prices of petrol and diesel, during the last few weeks, the retail selling prices in Delhi had risen to Rs. 70.83 per litre for petrol and Rs. 59.07 a litre for diesel as on 2nd October. These will now come down by Rs 2.
- Oct 4, 2017,
- Updated Oct 4, 2017 8:29 AM IST
The government on Tuesday reduced the central excise duty on petrol and diesel by Rs 2 a litre to bring down prices of the two fuels since it had come in for increasing criticism on the issue as consumers had come under inflationary pressure.
Due to the increase in the international prices of petrol and diesel, during the last few weeks, the retail selling prices in Delhi had risen to Rs. 70.83 per litre for petrol and Rs. 59.07 a litre for diesel as on 2nd October. These will now come down by Rs 2.
This rise in the prices of petrol and diesel is also reflected in WPI inflation, which has increased to 3.24% for August as compared to 1.88% for July this year.
"To cushion the impact of rising international prices of crude petroleum oil and petrol and diesel on retail sale prices of petrol and diesel, with effect from 4th October, 2017, and to protect the interest of the common man, the Government has reduced the basic excise duty rate on petrol and diesel [both branded and unbranded) by Rs. 2 per litre," an official statement said on Tuesday.
The reduction in excise duty would lead to a revenue loss of about Rs. 26,000 crore for thye government in a full year, and about Rs. 13, 000 crore during the remaining part of the current financial year, it added.
The basic cost of the two fuels is around Rs 30 per litre when they are supplied to the petrol pumps. The Central and state taxes which form a major source of revenue for both the Central and state governments jack up the prices of petrol and diesel. There is a Central excise duty of Rs 21.48 per litre on petrol and Rs 17.33 per litre.
Besides excise duty, state governments levy value-added tax in the range of 25-40 per cent on petrol and 15-25 per cent on diesel. Many state governments have also increased the VATon petrol and diesel in the last one year. On September 20, Finance Minister Arun Jaitley had ruled out a cut in excise duty.
"We need excise revenues to push public investment, and if any state wants to reduce excise they can do so," he had said.
With subdued tax collections and the fiscal deficit touching 96 per cent of this year's target in August, the Union government was reluctant to cut the excise duty on petrol and diesel. The government, however, is clear that there will be no rollback of the market-linked pricing policy for petrol and diesel.
The government on Tuesday reduced the central excise duty on petrol and diesel by Rs 2 a litre to bring down prices of the two fuels since it had come in for increasing criticism on the issue as consumers had come under inflationary pressure.
Due to the increase in the international prices of petrol and diesel, during the last few weeks, the retail selling prices in Delhi had risen to Rs. 70.83 per litre for petrol and Rs. 59.07 a litre for diesel as on 2nd October. These will now come down by Rs 2.
This rise in the prices of petrol and diesel is also reflected in WPI inflation, which has increased to 3.24% for August as compared to 1.88% for July this year.
"To cushion the impact of rising international prices of crude petroleum oil and petrol and diesel on retail sale prices of petrol and diesel, with effect from 4th October, 2017, and to protect the interest of the common man, the Government has reduced the basic excise duty rate on petrol and diesel [both branded and unbranded) by Rs. 2 per litre," an official statement said on Tuesday.
The reduction in excise duty would lead to a revenue loss of about Rs. 26,000 crore for thye government in a full year, and about Rs. 13, 000 crore during the remaining part of the current financial year, it added.
The basic cost of the two fuels is around Rs 30 per litre when they are supplied to the petrol pumps. The Central and state taxes which form a major source of revenue for both the Central and state governments jack up the prices of petrol and diesel. There is a Central excise duty of Rs 21.48 per litre on petrol and Rs 17.33 per litre.
Besides excise duty, state governments levy value-added tax in the range of 25-40 per cent on petrol and 15-25 per cent on diesel. Many state governments have also increased the VATon petrol and diesel in the last one year. On September 20, Finance Minister Arun Jaitley had ruled out a cut in excise duty.
"We need excise revenues to push public investment, and if any state wants to reduce excise they can do so," he had said.
With subdued tax collections and the fiscal deficit touching 96 per cent of this year's target in August, the Union government was reluctant to cut the excise duty on petrol and diesel. The government, however, is clear that there will be no rollback of the market-linked pricing policy for petrol and diesel.