- Advertisement -
Petrol cost was on Wednesday decreased by Rs 2.50 for every liter and diesel by Rs 2.25 after the lessening in excise duty on auto fuels. Petrol in Delhi now costs Rs 68.38 a liter, down from Rs 70.88. A liter of diesel now wants Rs 56.89 as against Rs 59.14 already, as indicated by Indian Oil Corp (IOC), the country’s biggest fuel retailer.
The government had on Tuesday cut excise duty on petrol and diesel by Rs 2 for each liter each to direct the relentless ascent in fuel costs throughout the most recent three months. IOC Director (Finance) A K Sharma said the cut in retail selling cost is higher in the wake of considering in its effect on VAT.
As things stand, excise duty is required on fuel created ex-refinery. Nearby sales tax or VAT is collected on the aggregate of ex-refinery cost in addition to excise duty and commission paid to dealers. In this way, till yesterday the VAT on petrol in Delhi was Rs 15.07 while today it remains at Rs 14.54.
On diesel, VAT today is Rs 8.41 for every liter as against Rs 8.73 beforehand. The excise duty cut delayed the determined ascent in rates saw since July 4. While petrol costs had expanded by Rs 7.80 to achieve Rs 70.88 a liter in Delhi yesterday, the most elevated since August 2014, diesel rates had ascended by Rs 5.70 to touch an unsurpassed high of Rs 59.14.
The excise duty cut would cost the government Rs 26,000 crore in yearly income and about Rs 13,000 crore amid the rest of the piece of the current financial year that closures on March 31, 2018, the government had said yesterday.
The government, which had between November 2014 and January 2016 raised excise duty on petrol and diesel on nine events to take away picks up emerging from diving worldwide oil costs, has been scrutinized for not cutting excise duty regardless of a maintained ascent in fuel costs since early July.
Altogether, duty on petrol was climbed by Rs 11.77 for each liter and that on diesel by 13.47 a liter in those 15 months that helped government’s extract wipe up more than twofold to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15.
While the costliest petrol was sold in September 2013 when it was valued at Rs 76.06 a liter in Delhi, the past most elevated rate for diesel was additionally amid the BJP control in September 2014 when it was estimated at Rs 58.97 for each liter.
On petrol, excise has been sliced to Rs 19.48 for each liter from Rs 21.48 for every liter and on diesel to Rs 15.33 a liter from Rs 17.33 beforehand. The ascent in petroleum and diesel costs likewise reflected in discount cost expansion, which expanded to 3.24 per cent in August 2017, when contrasted with 1.88 per cent in July.