Petrol and Diesel have become cheaper from midnight last night as the government reduced the basic excise duty on both by two rupees per litre. The decision has been taken to cushion the impact of rising international prices of crude oil and retail prices of petrol and diesel. Fuel prices have started moving up owing to refinery shutdowns in the US following recent hurricanes.
The reduction will apply on both branded and unbranded Petrol and Diesel and is expected to provide much needed relief to the common man. Petrol in Delhi will now be cheaper by two rupees 50 paise per litre and Diesel by two rupees 25 paise per litre.
Finance Ministry has said that revenue loss on account of these reductions will be about 26 thousand crore rupees in a full year and about 13 thousand crore rupees during the remaining part of the current financial year.
Centre has also urged the state governments to reduce the VAT imposed on Petrol and Diesel to provide more relief to consumers. In a statement Petroleum and Natural Gas Ministry said, the government is monitoring the developments in the prices of Petrol and Diesel in the international as well as domestic market. It said, the centre is committed to take all necessary steps to protect the wellbeing of consumers in the country.