Diesel-Petrol price likely to be reduced, govt may cut excise duty on petrol & diesel

According to a report in Business Today, the government is considering reducing excise duty on petrol and diesel. If this happens, it will have a direct effect on the price of oil in the domestic market. A report in Business Today quoted sources as saying that the Ministry of Petroleum and Natural Gas (MoPNG) and the Ministry of Finance were considering reducing excise duty. Importantly, oil companies did not make any change in oil prices for the sixth day in a row on Tuesday.

The price of LPG cylinder is likely to go up again. The government is trying to ensure that there is no increase in the price of domestic gas cylinders. However, commercial gas cylinders can be expensive. At present, the price of a domestic LPG cylinder in Delhi is Rs 949.50.

The government gets Rs 27.90 per liter on petrol and Rs 21.80 per liter on diesel through excise duty, the finance ministry had said in the Lok Sabha in 2021. The central government had in November 2021 reduced excise duty on petrol and diesel by Rs 5 and Rs 10, respectively. Now, if the government cuts it again, petrol and diesel prices may go down again.