New Delhi, Oct 3: The government on Tuesday reduced Basic Excise Duty rate on Petrol and Diesel (both branded and unbranded) by Rs 2 per litre to cushion the impact of increasing international fuel prices.
The new rate will be effective from midnight today.
“The Revenue loss on account of these reductions in excise duty is about Rs. 26,000 crore in a full year, and about Rs. 13000 crore during the remaining part of the current financial year” said in a Ministry of Finance statement.
GOI reduces Basic Excise Duty rate on Petrol & Diesel by Rs.2 perlitre wef 4.10.17 to protect interest of commonman. https://t.co/IXTbCPedgE
— Ministry of Finance (@FinMinIndia) October 3, 2017
Earlier due to the increase in the international prices of Petrol and Diesel, during the last few weeks, the Retail Selling Prices (RSP) of Petrol and Diesel at Delhi climbed to Rs. 70.83/litre and Rs. 59.07/litre respectively till the date.
The ministery also accepted the rise in prices of Petrol and Diesel reflected in WPI inflation, which has increased to 3.24% for the month of August as compared to 1.88% for the month of July this year.