The third excise duty hike since November will help raise additional Rs 6,000 crore during the current fiscal.
The fall in fuel prices is in a direct connection to the slump in international oil prices.
Government raised excise duty on petrol and diesel by Rs 2.25 and Rs 1 a litre respectively…
Domestic diesel price could come on a par with international rates as early as next week.
“We stopped rise of prices and we slashed price of petrol by up to Rs 2.50. Our eyes are now on diesel,” said Rajnath.
In 2011-12, the cumulative income from VAT on petrol, diesel and CNG was Rs 5,561 crore.
‘Total expenditure proposed in budget estimates for 2014-15 including debt…’
Diesel price hikes may be dumped as Congress party looks to burnish its pro-people image.
The changes in fuel prices will be applicable with effect from Thursday midnight.
Diesel is currently being sold at a loss of Rs 14.50 per litre.
Diesel losses had last touched about Rs 14 per litre in January,2012.
The Bharatiya Janata Party on Saturday dubbed the hike in diesel and petrol prices as a Jaziya tax against the common public.
Earlier on July 10,Veerappa Moily has asked P Chidambaram to provide an additional Rs 63,000 crore
The finance ministry has agreed to disburse Rs 8,000 crore as cash subsidy to Indial Oil Corp (IOC),BPCL and HPCL.
DM Arvind Kumar Singh issued an instruction asking all employees to save diesel and petrol.