Excise duty cut on petrol, diesel could reduce inflation by 30 bps

Petrol's price rise remained elevated even as it moderated to 22.26 per cent in September from 24.01 per cent in the previous month

The Centre’s move to cut excise duty on petrol by Rs 5 a litre and on diesel by Rs 10 a litre could reduce the consumer price index (CPI) inflation rate by up to 0.30 percentage points. However, not all of it will be visible in the November inflation data, which will be released in December, as the second round impact takes time to take effect.

Meanwhile, petrol prices were down by Rs 5.26 to Rs 6.77 a litre and diesel rates were lower by Rs 11.16 to Rs 12.48 per litre in the four major metros — Delhi, Mumbai,