Bowing to public pressure, the Government on Tuesday cut excise duty on petrol and diesel by Rs 2 per litre each to moderate the relentless rise in fuel prices witnessed for the last three months.
Petrol and diesel will cost Rs 2 a litre less from Wednesday after the first excise duty cut by the Modi Government comes into effect. Petrol currently costs Rs 70.88 per litre in Delhi while a litre of diesel is priced at an all-time high of Rs 59.14.
The excise duty cut would cost the Government Rs 26,000 crore in annual revenue and about Rs 13,000 crore during the remaining part of the current fiscal year that ends on March 31, 2018, an official statement announcing the reduction said. “Govt of India has reduced Basic Excise Duty rate on petrol and diesel by Rs 2 per litre,” the Finance Ministry said in a tweet.