The government has cut the basic excise duty on petrol and diesel by Rs 2 per litre in a move to provide some respite to the people from the inflationary impact effective from today. As a result of the cut in the basic excise duty, the prices have fallen as much as Rs 2.5 per litre.
The government has cut the basic excise duty on petrol and diesel by Rs 2 per litre in a move to provide some respite to the people from the inflationary impact effective from today. As a result of the cut in the basic excise duty, the petrol and diesel prices have fallen as much as Rs 2.5 per litre. Here are the prices in major cities today:
The price of petrol today in Delhi is Rs 68.38 per litre, in Mumbai Rs 77.51 per litre, in Kolkata Rs 71.16 per litre, in Chennai Rs 70.85, in Ahmedabad Rs 69.97, in Hyderabad Rs 72.4, in Bangalore Rs 69.44 and in Chandigarh Rs 68.52.
The price of diesel today in Delhi is Rs 56.89, in Kolkata Rs 59.55 per litre, In Mumbai Rs 60.43 per litre, in Chennai 59.89 per litre, in Bangalore Rs 56.96 per litre, in Chandigarh Rs 57.70, in Hyderabad Rs 61.81 per litre and in Ahmedabad Rs 63.03 per litre.
The government yesterday announced the cut in basic excise duty to cushion the impact of rising international prices of crude petroleum oil. “To cushion the impact of rising international prices of crude petroleum oil and petrol and diesel on Retail Sale Prices of petrol and diesel… and to protect the interest of common man, the government has reduced the basic excise duty rate on petrol and diesel (both branded and unbranded) by Rs 2 per litre,” the Central Board of Excise and Customs said in a statement yesterday.
Earlier last week, FE Online had reported how petrol and diesel prices have continued to rise despite oil minister Dharmendra Pradhan having said two weeks ago that the retail fuel prices would ease out in few days. Since 13 September, petrol price in Delhi had risen by 50 paise per litre, and was at Rs 70.88 per litre in the capital as of yesterday, October 3, 2017. The price of diesel has also seen a similar rise of 42 paise per litre since 13 September. Diesel was being sold in Delhi at Rs 59.14 per litre yesterday.
The price of petrol in Mumbai, which hit Rs 79.99 per litre yesterday, was near the levels last seen in August 2014 in the country’s financial capital. The government intervention seems to have stopped it just short hitting the Rs 80 per litre mark, at least for now. Today, petrol is being sold for Rs 77.51 per litre in Mumbai. Similarly, the price of diesel was at three-year highs in the metro cities of Kolkata and Chennai at Rs 61.80 and Rs 62.30 per litre respectively.
Retail fuel prices in India have gradually aligned with the global crude oil prices and international retail fuel markets since the government freed up petrol pricing from its control seven years ago. The price of petrol was under the government control when the crude oil was at its peak.
Biting the bullet, the government deregulated the price of the fuel from its control in 2010, allowing the oil refining and marketing companies to set it at line with the market dynamics, especially crude oil prices. Then, earlier this year, the government introduced dynamic fuel pricing on June 16 — a mechanism for revising retail fuel prices daily across the nation in conjunction with the change in the crude oil prices.