Petrol price down by Rs 2.42/litre, diesel Rs 2.25/litre

MUMBAI: Global crude oil prices have fallen almost 50% since June 2014, the most since the 2008 financial crisis, as supplies swelled. State-run oil marketing companies reduced the price of petrol by Rs 2.42 and diesel by Rs 2.25 a litre, but the benefit to consumers will be capped as the government announced a Rs 2 per litre increase in excise duty on both fuels

This is the ninth reduction in petrol prices since August and fifth in diesel since October. Nevertheless, the reduction in local prices hasn’t been as steep as the decline in global crude oil prices, partly because of excise duty hikes.

The finance ministry raised the excise duty on the fuels in an attempt to mop up funds that would be used to finance infrastructure projects in the current and next financial years. The latest was the fourth time since November the government has increased the levy. This is likely to result in additional revenue of more than Rs 20,000 crore. The price of fuel sold at retail pumps are reviewed every fortnight, but the companies this time had not done that on the due date Thursday, despite the global rates falling 4% since the last revision, triggering speculations that they are not keen on sharing the benefit with consumers.

Earlier on Friday, Petroleum Minister Dharmendra Pradhan said the price cut is not in the hands of the government and the state-owned firms will do what is “appropriate”.

In 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. 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.

Source:Economictimes

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