There is good news for the common man as once again, much to their relief, petrol prices have been reduced for the record ninth straight time since August and fifth straight time for diesel since October. The Petrol price was cut by Rs 2.42 per litre and diesel by Rs 2.25 a litre after an excise duty hike limited the benefit of global crude prices slumping to six-year low.
The reduction would have been almost double but for the government also raising excise duty by Rs 2 per litre on both petrol and diesel. New rates will be effective midnight 16/1/2015 , Indian Oil Corp, the nation’s largest fuel retailer, announced.
That means the new prices will be as follows —- Delhi, petrol will cost Rs 58.91 a litre, the lowest in 44 months, as compared to Rs 61.33 a litre now. Similarly, diesel will cost Rs 48.26 a litre in Delhi, the lowest since April 2013, as against Rs 50.51 currently.
This is the fourth hike in excise duty since November and cumulatively customers have been denied the benefit of Rs 7.75 per litre reduction in petrol and Rs 6.50 a litre cut in diesel rates that was warranted due to the slump in oil price to USD 46 per barrel.
A Finance Ministry notification said the excise duty on unbranded petrol is being hiked to Rs 8.95 per litre and that on unbranded diesel to Rs 7.96 per litre. The four excise duty hikes will result in about Rs 20,000 crore in additional revenue this fiscal and will help the government meet its fiscal deficit target of 4.1 per cent of the GDP. Petrol and diesel prices were last cut on December 16 by Rs 2 per litre each.