Budget 2017: Govt may cut excise duty on petrol
Excise duty on petrol and diesel might be reduced in the upcoming budget, sources told Zee Business.
Alok Priyadarshi reports that there is a possibility of excise duty reduction by Rs 2 per litre on petrol and Rs 3 per litre on diesel.
Finance Minister Arun Jaitley will announce Union Budget 2017 on February 1, 2017.
Petrol and diesel consumers in India did not gain much from the global crude oil crash as the Government consistently raised excise duty in order to mop up its revenues.
Since Modi-Government took power in 2014, excise on petrol has risen by Rs 11.77 per litre and Rs 13.47 per litre on diesel sales.
Currently, consumers pay Rs 21.48 per litre excise duty on petrol and Rs 17.33 per litre on diesel.
Petroleum ministry believes that crude oil prices will continue to gain in the coming days.
As compare to May 2014, crude oil prices have nearly halved but petrol and diesel sales price in India haven't moved much.
In May 2014, crude oil was trading at $105 per barrel while currently it is trading in the range of $54-55 per barrel.
Whereas, per litre of diesel in New Delhi cost Rs 57.28 an petrol retailed at Rs 71.15.
So far since May 2014, excise duty on petrol and diesel has risen 11 times.