The central government has slashed the excise duty on fuel affecting a Rs 10 drop in the price of diesel and Rs 5 in the price of petrol. This is an excise duty cut done by the central government, which means the whole country will benefit from the reduction.
Details are still coming in on the same. Currently, ANI has updated the information on its social media handles. Interestingly, the move comes two weeks after the Government of India announced that it will not reduce any excise duty on the fuel to bring down the prices.
The government officials said that there is no chance of reducing the excise duty on the fuel. Currently, the fuel prices in India is at an all-time high as the international prices of crude oil are also soaring.
No fuel price hike today after seven days
After seven straight days of price hikes, the state-owned oil companies did not hike the prices today. Today was the second day in a row when the prices of diesel remained unchanged as well. The most recent hike on 2nd November pushed the price of petrol to Rs 110.04 per litre. The price of diesel was hiked last on 1st November and it is currently selling at Rs 98.42 per litre.
State-owned retail oil companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum revise the prices of fuel in India on a daily basis. The price is decided after taking the international crude oil prices and the rupee-dollar exchange rates into account. The new price comes into effect every morning at 6 AM.
The surge in the international oil prices ended after a three-week pause of the hike for petrol and diesel. The state-owned companies started raising the prices of petrol on September 28 and diesel on September 24. Since then, the price of diesel has gone up by Rs 4.9 per litre while the price of petrol has increased by Rs 3.9 per litre. Between May 4 and July 17, the companies increased the prices of diesel by Rs 9.14 while the petrol price saw a hike of Rs 11.44 per litre.
State governments may follow the same
Both central and state governments charge excise duty on fuel and the taxes are higher than the base price of fuel. While the central government has decided to reduce the excise duty from tomorrow, we are not sure if the state governments will also announce a similar reduction in the future. The Finance Ministry has urged the state governments to reduce the prices. On 4th January 2020, the price of petrol was Rs 79.63 per litre while diesel was selling for Rs 73.55 per litre. Both the fuel types along with LPG, Aviation fuel and CNG have seen massive hikes in recent times.