New Delhi, May 1: As Petrol and Diesel prices have reached a 4-year high, still the Narendra Modi led central government is not considering to cut excise duty on fuels.
Spaking to news agency PTI, Economic Affairs Secretary Subhash Chandra Garg said that the government was not considering cutting excise duty on petrol and diesel yet as rates have not touched levels that could trigger such an action.
As per Garg “Every rupee cut in excise duty on petrol and diesel will lead to a revenue loss of Rs 13,000 crore. And if the level of fuel prices do not go up, there is no reason for any tax cut.
He also said that ‘…fundamental reasons, to my mind, don’t exist for oil prices to go up further from both demand and supply situation’.
In the third week of April, petrol price touched a 55-month high of Rs 74.63 and diesel rates climbed an all-time high of Rs 65.93 per litre. And the prices remained same with no revision in all metro cities including Delhi, Kolkata, Mumbai and Chennai – for over a week now.
On Tuesday, petrol price in the national is Rs 74.63, in Kolkata Rs 77.32, in Mumbai Rs 82.48 and in Chennai Rs 77.43 per litre.
Both State and Central governments have their share of taxes on petroleum products.
At present, the central government levies Rs 19.48 a litre of excise duty on petrol and Rs 15.33 per litre on diesel. While states have value added tax or VAT that vary from state to state.