The Union government has decided to reduce the central excise duty on Petrol and Diesel by Rs 2 per Litre effective from 4 October 2017.
With this reduction, the decrease in prices of Petrol and Diesel will be Rs 2.50 per litre and Rs 2.25 per litre respectively in Delhi. This measure is aimed at giving relief to the consumers and farmers, especially in the view of the upcoming agricultural season when Kharif crops would be harvested and Rabi crops would be sowed.
Since the past few weeks, prices of both the fuels were rising due to increase in their prices in the international market.
The prices of Petrol and Diesel on 3 October were Rs 70.88 per litre and Rs 59.14 per litre respectively in Delhi.
Besides this, the centre has also requested the state governments to make reduction in VAT imposed by them on Petrol and Diesel so as to give more relief to consumers.
The Revenue loss on account of these reductions in excise duty would amount to about Rs 26,000 Cr in a full year and about Rs 13000 Cr during the remaining part of the current financial year.