Excise duty on petrol and diesel has been reduced by 2 rupees, prices may fall

New Delhi: Government on Tuesday (October 3) reduced the transportation fuel-petrol and diesel excise duty by two rupees per liter. “The Indian government has decided to reduce the basic excise duty on diesel and petrol by two rupees per liter, which will be effective from October 4 ie 4 (October 4),” the finance ministry issued a statement. According to the statement, the government has taken this step after the increase in prices of crude oil in the international market, keeping in view the interests of common people. According to the statement, “This decision will result in a loss of Rs 26,000 crore for excise duty for the full year and there will be a loss of Rs 13,000 crore in the remaining time of this financial year.”

Prior to this, the prices of CNG, PNG have increased in the national capital including Delhi, Noida, Ghaziabad and Rewari. Indraprastha Gas Ltd. (IGL) has increased the price of LPG (PNG) coming into homes through compressed natural gas (CNG) and pipes. The company has announced a price hike from Wednesday (October 4). After the recent notification of the increase in the price of natural gas produced by the Central Government in the domestic sector, the company has announced a hike from Wednesday.

After review, CNG price in Delhi will increase by 95 paisa per kg. The prices of CNG in Noida, Greater Noida and Ghaziabad will be increased by Rs 1.26 a kilo. According to the release of IGL, a joint venture company of GAIL (India) Ltd., BPCL and Delhi Government, where the consumer price of CNG has gone up to Rs 39.71 per kg in Delhi, in Noida, Greater Noida and Ghaziabad, it is Rs 49.20 Kg. This increase in prices has come into effect from Monday midnight (October 3).

Earlier, Finance Minister Arun Jaitley had said on Wednesday (September 20th) at high prices of petrol and diesel that the government needs revenue support for public expenditure, which would not have hindered the growth path. Jaitley did not give any indication that the government could cut rates of excise duty from petrol and diesel. The Finance Minister had said that high prices and VAT were being charged by the states on fuel. However, he did not mention that the excise duty on petrol has increased by 11.77 rupees per liter from November 2014 to January 2016, while on diesel it has increased to 13.47 rupees per liter. This has led to the disappearance of crude oil prices falling in the international market.

In BJP-ruled Maharashtra, the rate of VAT on petrol is 46.52 percent. In Mumbai, it is 47.64 percent. In Andhra Pradesh, VAT on petrol is 38.82 percent. The rate of VAT on petrol in Madhya Pradesh is 38.79 percent. The BJP-led National Democratic Alliance (NDA) government has 18 out of 29 states. Jaitley, however, had assured that fuel prices would soon come under control.