New Delhi: On Friday, State fuel retailers reduced the price of diesel by Rs.2.25 per litre and petrol by Rs.2.42 per litre. However, the consumers were not given the complete benefit of six-year-low crude prices as Rs 2 was tapped off by the government by raising excise duty.
This is the fifth decrease in diesel price since October last year and the ninth reduction in petrol since August. Petrol will cost Rs 58.91 a litre while diesel will cost Rs 48.26 in Delhi.
On Thursday evening which was the day scheduled for the fortnightly review, the fuel retailers had delayed announcing the price revisions as the government was debating the move to raise excise.
Since November last year, this is the fourth increase in excise duty. Cumulatively, the customers have not been given the benefit of Rs 7.75 per litre reduction in petrol and Rs 6.50 litre reduction in diesel prices which was warranted owing to slump in oil rates to 46 dollars per barrel.
The prices for petrol have been cut by Rs 14.69 per litre since August. The diesel rate in five downward revisions has been reduced by Rs 10.71 per litre.
A notification by the finance ministry informed that the excise duty on unbranded diesel was being increased to Rs7.96 per litre and to Rs 8.95 on unbranded petrol.
It is expected that the four increases in excise duty will yield Rs.20,000 crore in additional revenue this fiscal and support the Government in meeting the target of limiting the fiscal deficit to 4.1 per cent of the GDP.
The global crude oil prices have gone down by almost 50 per cent since June last year.