Bowing to public pressure, the government on Tuesday, 3 October, cut excise duty on petrol and diesel by Rs 2 per litre to moderate the relentless rise in fuel prices witnessed since the last three months.
With effect from 4 October, prices of petrol and diesel will be reduced by the amount of duty cut. Petrol currently costs Rs 70.88 per litre in Delhi, while a litre of diesel is priced at Rs 59.14 – the highest ever.
On petrol, the government currently levies excise duties totalling Rs 21.48 per litre, while that on diesel is Rs 17.33.
The government, which had increased duties three years ago 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.
The price of petrol jumped by Rs 7.8 per litre since 4 July, while diesel rates have touched an all-time high after rates went up by Rs 5.7.
The duty reduction will lead to a Rs 13,000 crore loss of revenue to the government during the remaining period of the fiscal.
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