New Delhi: The government cut excise duty on petrol and diesel by Rs 2 per litre each bowing to huge public pressure.
As a result, petrol and diesel will cost Rs 2 a litre less from today after the first excise duty cut by the Narendra Modi government comes into effect. Petrol at this point of time costs Rs 70.88 per litre in Delhi while a litre of diesel is priced at an all-time high of Rs 59.14.
Pretty much clear, because of the increasing public criticism of keeping the duty high despite international oil prices going up. The government had between November 2014 and January 2016 raised excise duty on petrol and diesel as many as nine times.
“This decision (to cut excise duty) has been taken by the Government in order to cushion the impact of rising international prices of crude petroleum oil and petrol and diesel on retail sale prices of petrol and diesel as well as to protect the interest of common man,” the finance ministry has said in a statement.
The excise duty cut would cost the government Rs 26,000 crore in annual revenue and about Rs 13,000 crore during the remaining part of the current fiscal year, according to the finance ministry statement.
The consumer has emerged victorious, to put it in simple words. There has been huge pressure on the government to take a relook at the excise duty on auto fuel. Despite that, oil minister Dharmendra Pradhan had ruled out any change in the duty. However, finally the government has yielded to public pressure.