Petrol, diesel to get cheaper by Rs 2 from Oct 4

  • Petrol, diesel to get cheaper by Rs 2 from Oct 4

Petrol, diesel to get cheaper by Rs 2 from Oct 4

"Government officials indicate that a price cut of Rs 5 per litre on petrol and diesel is likely".

According to the Indian Oil website, the price of non-branded petrol in Delhi is slashed by Rs. 2.5/litre.

The Finance Ministry also stated that the rise in fuel prices also reflected in Wholesale Price Index-based inflation which increased to 3.24 percent in August as opposed to 1.88 percent in July.

Yesterday, it reduced excise duty on petrol to Rs 19.48 per litre from Rs 21.48 per litre and on diesel to Rs 15.33 a litre from Rs 17.33 previously.

Prior to that, the government had in four installments raised the excise duty on petrol and diesel between November 2014 and January 2015 to take away gains arising from fall in global oil prices.

After the reduction, the price of petrol has come down to Rs 77.51 per litre and diesel to Rs 60.43 per litre in Mumbai.

Earlier, due to the increase in the global prices, the retail selling prices (RSP) of petrol and diesel at Delhi have risen to Rs 70.83/litre and Rs 59.07/litre respectively, as on 2nd October 2017.

Petrol and diesel prices have gone through the roof ever since the central government announced daily revision of fuel prices.

Many view the latest government's move to slash excise duty on petrol and diesel as a poll gimmick as the BJP faces its toughest battle yet in Gujarat, where it has been in government for 22 years. The government intervention seems to have stopped it just short hitting the Rs 80 per litre mark, at least for now.

In the overseas market, oil prices eased on Wednesday over caution that a price rally that lasted for most of the third quarter would not extend through the last three months of the year.

The central government is now also planning to ask the states to reduce Value-Added Tax on fuel so that it further helps in reduction of fuel prices.

The ministry had earlier said no to cut in excise duty on petroleum products.

All fuel prices are on the increase this coming week, starting October 5.