Branded diesel may get cheaper as govt plans excise duty cut

Branded diesel might get cheaper after the Union budget as the government has been considering slashing excise duty by Rs.2.6 per litre.
 
The cut in the motor fuel might bring down inflation.
 
According to sources, basic excise duty on branded diesel is Rs.3.75 per litre and the government proposes to bring it down to Rs.1.15 per litre.
 
There is no excise duty on normal diesel after it was waived off last year. At present, the difference in price between branded and unbranded diesel varies between Rs.4.88 and Rs.5.41 per litre.
 
The oil marketing companies have been complaining that because of such steep price difference they were not able to sell their premium brands.