After being stung by criticism, the Narendra Modi Govt today slashed prices of petrol, diesel by Rs 2 per litre.
With the Opposition and ordinary folks questioning the Modi government on high petrol and diesel prices when crude oil prices was plummeting, the Centre today slashed the excise duty on petrol and diesel by Rs 2 per litre. The new rate will come into effect from midnight.
“Govt of India has reduced Basic Excise Duty rate on Petrol & Diesel (both branded and unbranded) by Rs 2 per litre w.e.f. 4th October, 2017,” the finance ministry said in a tweet on Tuesday.
This has been done to cushion the impact of rising international prices of crude petroleum oil and petrol and diesel on their Retail Sale Prices, the ministry added.
“Revenue loss on account of these reductions in excise duty is about Rs 26,000 crore in full year and Rs13,000 crore in remaining part of Current FY. This decision has also been taken by the Government of India in order to protect the interest of common man,” the finance ministry said.
The Modi government was obviously stung by the high retail selling price of petrol which had crossed Rs 70 in most states, while the price of diesel is close to Rs 60.