Government eases petrol price by 4 paise, diesel price down 3 paise

Now petrol in Delhi would be available for Rs 59.95 per litre as against Rs 59.99 earlier. For diesel, one has to shell out Rs 44.68 for a litre as compared to Rs 44.71 previously, according to Indian Oil Corp (IOC).

By: PTI | New Delhi | Published:February 1, 2016 1:28 pm
petrol, diesel, petrol price, diesel price, petro price cut, petrol diesel price cut, excise duty petrol diesel, india news, latest news The third increase in excise duty in a month will get the government Rs 3,200 crore in additional revenue during the remainder of the current fiscal.

Petrol price on Monday was slashed by a marginal 4 paise a litre and diesel by 3 paise a litre as the government raised excise duty to deny consumers full benefit of falling international oil prices.

Now petrol in Delhi would be available for Rs 59.95 per litre as against Rs 59.99 earlier. For diesel, one has to shell out Rs 44.68 for a litre as compared to Rs 44.71 previously, according to Indian Oil Corp (IOC).

The reduction should have been Rs 1.04 per litre in petrol and Rs 1.53 in diesel because of a USD 4 per barrel fall in international rates in the last fortnight. But the government on the eve of the due price revision on Sunday raised excise duty on petrol by Re 1 per litre and that on diesel by Rs 1.50.

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The third increase in excise duty in a month will get the government Rs 3,200 crore in additional revenue during the
remainder of the current fiscal.

Taken together with the two excise duty hikes in November and December 2015, the government is expected to get Rs 17,000 crore in additional revenue. The five levy hikes total to Rs 4.02 per litre on petrol and Rs 6.97 on diesel.

Petrol price should have been Rs 55.93 a litre and diesel at Rs 37.71 if the excise duties were not hiked on the five
occasions.

The reduction in auto fuel prices today was the fifth cut in two months on back of softening global oil prices.

Rates were last cut by 32 paise a litre for petrol and 85 paise for diesel from January 16. Prior to that, rates were slashed by 63 paise on petrol and Rs 1.06 on diesel on January 1. In two reductions in December, prices were cut by Rs 1.08 on petrol and 71 paise on diesel.

State-owned fuel retailers IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) revise rates of the fuel on 1st and 16th of every month based on average oil price and foreign exchange rate in the preceding fortnight.

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  1. A
    Anil
    Feb 1, 2016 at 10:41 am
    Another feather on Modiji's hat.
    Reply
    1. A
      Anil
      Feb 1, 2016 at 8:10 am
      See,Dont blame THE government again petrol and diesel price is reduced.
      Reply
      1. B
        Bijan Mohanty
        Feb 1, 2016 at 4:29 pm
        Recently govt. increased the petrol and diesel price and there was virtually no news on that. When a small part of the rise is reversed, there is frontline news in newspapers. This is Modi's way of managing the news.
        Reply
        1. B
          bluemonkey
          Feb 1, 2016 at 11:43 am
          Khilaye amir kho ghee ki roti aur karen bhikari se chori!
          Reply
          1. D
            Dharmendra
            Feb 1, 2016 at 8:42 am
            THIS IS WHAT IS CALLED RULLING PARTY POWER AND OPPOSITION PARTY SILENCE. SO PUBLIC HAVE TO SUFFER WHO EVER IS IN THE POWER
            Reply
            1. D
              Deepak Singh
              Feb 1, 2016 at 12:07 pm
              Every couple of months Modi increases duty on Petrol by 100p and then decreases price by 4p, as if he is doing a favor to us. This is Feku Modi's famous Phot-shop model of Development where the public is supposed to be grateful while being ripped off.
              Reply
              1. G
                Gurinder Kohli
                Feb 1, 2016 at 10:17 am
                So now we know where is all tax collection coming from, the overall economy is in a bad shape which the government of the day wants all to believe otherwise. why cant we be more transparent and where are the opposition parties and teh Arnabs of teh media.
                Reply
                1. J
                  Jayaprakash Pk
                  Feb 2, 2016 at 12:59 pm
                  We Indians elected the present government out of disappointment of UPA2 and thinking that the general public would get a decent treatment from the new government. But after 18 months of rule by the new government, one has to come to the conclusion that the government is more concerned about themselves rather than the voters. By increasing the excise duty on petrol and diesel for the umpteenth time, and facing criticism over that issue , I though the ministry would have learned a lesson. The decrease in the price of crude oil should have been ped on to the consumers as has been done by several countries. When the crude prices went sky high, the prices were increased but all of us had accepted it knowing fully well that the government can not absorb such high prices. But now we are being taken for a ride by absorbing the benefit that would have otherwise landed in the pockets of petrol and diesel consumers. Now, as if that is not enough, a decrease of 5 paise has been announced thus fooling the consumers, and I feel it is nothing but an insult on the hapless voters. We did not expect this from the government. In any case, you can go on increasing the duties only till 2019 as the next elections are due by that time because we did a mistake in electing you to rule us thinking that it would better than UPA2. I think the government has not understood anything from the poll debacle of Bihar, Delhi etc. and the disagreement by the largest party in JandK not to form government with BJP after the demise of the then leader who arranged a pact with BJP. One need not study economics in detail to know that inflation is caused by the rising prices of essential and other commodities and the due decrease in price of diesel should have brought down transportation costs and thus prices paving way for decrease in inflation.
                  Reply
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