The government on Tuesday reduced Basic Excise Duty rate on both branded and unbranded petrol and diesel by Rs 2 per litre. The new prices will be effective from tomorrow, October 4.
Prices of petrol and diesel will be reduced by the amount of duty cut with effect from tomorrow. Petrol currently costs Rs 70.88 per litre in Delhi while a litre of diesel is priced at Rs 59.14, the highest ever.
The move by the Centre comes amid the nation reeling under the onslaught of the steep hike in petrol and diesel prices as a result of the government’s decision to introduce daily price revision for fuel prices.
According to the Finance Ministry, the move is an attempt to "cushion the impact of rising international prices of crude petroleum oil, and petrol and diesel on their retail sale prices".
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It further stated that the government will incur revenue loss of about Rs 26,000 crore in full year, and Rs 13,000 crore in the remaining part of the curent financial year.
The ministry also said that the decision has been taken by the government "in order to protect the interest of the common man".
The petrol and diesel prices in India recently reached to a three-year high despite low crude oil prices in the international market. Consumers are getting restive with the price hike because they feel the concept of market-determined rates was tampered with by frequent tax hikes.
The opposition parties have blamed that the high tax burden on these fuels and asked the government to take immediate steps to bring down the rising petrol and diesel prices to give relief to the consumers.
