the reduction in excise duty by Rs 6.30 per litre on petrol and Rs 2.29 on diesel would not impact government revenues as current sale of branded fuels was "meager". But it would help in conservation as these fuels provide improved engine performance to yield 2 per cent savings in consumption.
Branded petrol and diesel is priced at a premium to regular fuel as additives put in them remove harmful deposits from engines, prevent corrosion, reduce emissions and lower maintenance costs. ( Moily had on October 1 launched a nationwide mega campaign to conserve oil. "The purpose of the conservation campaign is to reduce consumption of key petroleum products by minimising wastage through simple fuel saving measures," the statement said.
The conservation drive is aimed at saving 3 per cent fuel or about Rs 16,000 crore in one year.
"The Petroleum Ministry has also urged the Ministry of Power to notify 'Fuel Economy' norms for passenger cars within this year," it said.
Moily will shortly convene a meeting of all stakeholders to discuss the modalities of developing and bringing these norms into effect given the fact that countries like the US and China have already announced ambitious targets.
The Petroleum Ministry has already approached the Ministry of Urban Development with the offer of funding "free cycles scheme" in select cities to cut down on fuel consumption.
It will also be approaching chief ministers of all states with a similar offer so that cities which come forward with such schemes, can be provided resources by the oil companies to implement such projects.
Officials in the Ministry and the 14 PSUs under it are "religiously" using public transport on at least one day a week to highlight the need to adopt public transport, reduce fuel consumption by government agencies and to enlist the support of the wider public in this campaign.
"Karnataka has also recently joined this effort by announcing "bus day" in Bangalore and it is hoped more and more states will also follow suit," the statement said.