New Delhi: The prices of petrol and diesel are increasing continuously in the country. Now a report has come in which says that after a few days its prices may fall. Excise duty can be cut by up to Rs 8.5 per liter on central petrol and diesel. The report believes that this will not affect the government’s revenue either. There are reports quoting sources in the Finance Ministry that the government is considering it and a decision can be taken after March 15.
ICICI Securities has said, “We estimate that if there is no cut in excise duty on vehicle fuel in FY 2021-22, then the revenue recovery will reach Rs 4.35 lakh crore.” While the budget estimate is Rs 3.2 lakh crore. Accordingly, if the excise duty is also reduced by Rs 8.5 per liter on or before April 1, 2021, then the budget estimate for the next financial year will be achieved.
Between March and May 2020 last year, the excise duty on petrol was increased by 13 rupees and diesel by 16 rupees a liter. At present, a total of Rs 32.90 on petrol and Rs 31.80 per liter on diesel is applicable.
Taking advantage of the falling crude oil prices in the international market from November 2014 to January 2016, the central government had hiked the excise duty on petrol and diesel 9 times till now. Petrol in the capital Delhi is currently at Rs 91.17 per liter and diesel at Rs 81.47 per liter. On March 27, the prices of these two were increased by 24 paise and 15 paise per liter respectively. There is an excise duty of Rs 32.90 in petrol.