The Budget reduced basic excise duty on branded and unbranded petrol as well as diesel.Unbranded Petrol which attracted excise of Rs 6.48 per litre has been reduced to Rs 4.48 per litre.Branded petrol has basic excise duty of Rs 7.66 per litre which has been slashed to Rs 5.66 per litre. Unbranded diesel having basic excise duty of Rs 8.33 per litre was reduced to Rs 6.33 per litre.
Basic excise duty on branded diesel was also reduced from Rs 10.69 per litre to Rs 8.69 per litre.In January, fuel prices touched a 40-month high in Mumbai. Petrol price in Mumbai was Rs 80.10 per litre, while diesel was priced at Rs 67.10. Prices in international markets have been fluctuating since the last few weeks and are being reflected in domestic rates. In wake of the rallying crude oil price, the Oil Ministry had demanded excise duty cut from the Finance Ministry.
Indian Oil Corp (IOC) Chairman Sanjiv Singh on Monday responding to the charges of government meddling in fixing of fuel prices said that Petrol and diesel prices in India are to a “large extent” aligned to international rates.