Petrol, diesel prices cut; excise on fuels raised

With international crude oil prices going below $45 a barrel, India's state-run oil marketing companies Friday cut petrol price by Rs.2.42 a litre and that of diesel by Rs.2.25 per litre.

At the same time, the government Friday raised the excise duty on both petrol and diesel by Rs.2 a litre.

"Indian Oil Corp has decided to effect the following price changes w.e.f midnight of 16th/ 17th Jan 2015: Decrease in retail selling price of petrol by Rs.2.42 /litre at Delhi (including state levies) with corresponding decrease in other states. Decrease in Retail Selling Price of Diesel (Retail) by Rs. 2.25 /litre at Delhi (including state levies) with corresponding decrease in other states," the oil marketer said in a statement here.

The basic excise duty on the transport fuels, raised for the fourth time in quick succession, would be effective from midnight of Jan 16 and there would be no change in other excise duty rates applicable to the transport fuels, the government said.

On Jan 1, the government had increased basic excise duty on petrol and diesel - both branded and unbranded - by Rs.2 a litre.

To make up for fall in taxes due to the sustained decline in international crude oil prices, the government hiked excise duty by Rs.1.50 a litre on both the fuels first on Nov 12. Later, on Dec 2, the duty on petrol was hiked by Rs.2.25 per litre and on diesel by Re.1 a litre.

This is expected to fetch the government an additional Rs.10,500 crore in the current fiscal.