State fuel retailers pared the price of petrol by Rs.2.42 per litre and diesel by Rs.2.25 a litre but consumers were denied the full benefit of six-year low crude prices as the government tapped off Rs.2 by raising excise duty .
But still, this is the ninth reduction in petrol price since August and the fifth in diesel price since October. In Delhi, petrol will cost Rs.58.91 a litre, down from Rs.61.33 a litre now. Similarly , diesel will cost Rs.48.26 a litre, as against Rs.50.51 currently . In Mumbai, petrol price will be cut by Rs.2.55 a litre to Rs.71.91, while diesel will cost Rs.61.04.
This is the fourth increase in excise duty since November and cumulatively customers have been denied the benefit of Rs.7.75 per litre reduction in petrol and Rs.6.50 a litre cut in diesel rates that was warranted due to the slump in oil price to $46 a barrel. With Friday's reduction, petrol price has been cut by Rs.14.69 a li tre since August, while diesel rate in five downward revisions has been slashed by Rs.10.71.
A finance ministry notification said the excise duty on unbranded petrol was being hiked to Rs.8.95 per litre and that on unbranded diesel to Rs.7.96 per litre. The four increases in excise duty is expected to yield Rs 20,000 crore in additional revenue this fiscal and help the government meet the target of limiting fiscal deficit to 4.1% of GDP. Global crude oil prices have fallen almost 50% since June 2014, the most since the 2008 financial crisis, as supplies swelled.
But still, this is the ninth reduction in petrol price since August and the fifth in diesel price since October. In Delhi, petrol will cost Rs.58.91 a litre, down from Rs.61.33 a litre now. Similarly , diesel will cost Rs.48.26 a litre, as against Rs.50.51 currently . In Mumbai, petrol price will be cut by Rs.2.55 a litre to Rs.71.91, while diesel will cost Rs.61.04.
This is the fourth increase in excise duty since November and cumulatively customers have been denied the benefit of Rs.7.75 per litre reduction in petrol and Rs.6.50 a litre cut in diesel rates that was warranted due to the slump in oil price to $46 a barrel. With Friday's reduction, petrol price has been cut by Rs.14.69 a li tre since August, while diesel rate in five downward revisions has been slashed by Rs.10.71.
A finance ministry notification said the excise duty on unbranded petrol was being hiked to Rs.8.95 per litre and that on unbranded diesel to Rs.7.96 per litre. The four increases in excise duty is expected to yield Rs 20,000 crore in additional revenue this fiscal and help the government meet the target of limiting fiscal deficit to 4.1% of GDP. Global crude oil prices have fallen almost 50% since June 2014, the most since the 2008 financial crisis, as supplies swelled.
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