Petrol, Diesel Prices Likely To Reduce By Rs 8

Petrol, Diesel Prices Likely To Reduce By Rs 8
Petrol, Diesel Prices Likely To Reduce By Rs 8

New Delhi: The government may surprise consumers with a sharp cut in excise duty on petrol and diesel to tame rising prices of auto fuels that have already reached historic high levels.Sources privy to the development said the duty cut may be as high as Rs 8 per litre on the two fuels so that consumers are provided immediate relief.Petrol and diesel prices reached all time high levels last month and since then have been touching new highs every day. In the month of February itself, the pump prices of the two auto fuels have increased 14 times taking up petrol prices by Rs 4.22 per litre to Rs 91.17 a litre and diesel by Rs 4.34 a litre to Rs 81.47 a litre in Delhi.“The revenue projection from the oil sector for FY22 gives the government room to cut excise duty on petrol and diesel sharply to provide immediate relief to consumers. This is being examined and a call may be taken soon,” said a government official privy to the development.According to a report prepared by ICICI Securities, excise duty on auto fuels is estimated at Rs 4.35 lakh crore in FY22, if there is no cut in excise duty on the two products as against the budget estimate of Rs 3.2 lakh crore.