Centre slashes excise duty on petrol, diesel by Rs 2/ litre

New Delhi: The Union Government on Tuesday decided to reduce the basic excise duty rate on petrol and diesel [both branded and unbranded] by Rs 2 per litre with effect from Wednesday. This decision was taken to cushion the impact of rising international prices of crude petroleum and petrol and diesel on retail sale prices of petrol and diesel as well as to protect the interest of common man, according to an official release. 

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 the release. 

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 New Delhi have risen to Rs 70.83/litre and Rs 59.07/litre respectively, as on October 2, 2017. This rise in the prices of petrol and diesel is also reflected in WPI inflation, which has increased to 3.24% for August 2017, as compared to 1.88% for July 2017.This also prompted the Centre to act swiftly in this regard.