Petrol and diesel prices in India decreased on Saturday. Petrol prices have slashed by 13 paise in the capital and diesel is 16 paise cheaper than yesterday. The government also declared a hike of ₹3 on excise duty on petrol and diesel. The hike in excise duty may dampen the collapse of fuel prices in India following the coronavirus outbreak across the globe.
The price of per liter of petrol in Delhi is ₹69.87 down from ₹70 on Friday. Diesel is selling at ₹62.58 in Delhi down from ₹62.74 yesterday. The price in Mumbai for a liter of petrol is ₹75.57 down from ₹75.70 on Friday. A liter of diesel will cost ₹65.51 on Saturday, compared to ₹65.68 on Friday.
In Kolkata, a liter of petrol is priced at ₹72.57, down from ₹72.70 yesterday. Diesel has been priced at ₹64.91 per liter. On Friday, a liter of diesel in Kolkata was priced at ₹65.07.
In Chennai, petrol is selling at ₹72.57 per liter compared to ₹72.71 on Friday. Diesel is selling at ₹66.02 down from ₹66.19 on Friday.
The Central Board of Indirect Taxes and Customs (CBIC) has notified that the additional excise duty on petrol and diesel by ₹1 each and special additional excise duty on the two fuels by ₹2 each will be roll out on Saturday. After the hike, the excise duty on petrol is up from ₹19.98 to ₹22.98 whereas the duty on diesel is at ₹18.83, up from ₹15.83.
The hike in excise duty comes at a time when the government is struggling to generate revenue from other avenues. In an earlier report, a government official told Mint that the decision was taken as a measure of fiscal prudence. The official also claimed that despite the steep increment in excise duty, petrol and diesel prices were lower on Saturday compared to Friday.
The fall in price of global crude oil has sent petrol and diesel rates in a downward spiral. A price war over the demand of a production cut has led to to the crash in oil prices. This week, Saudi Arabia cut down its selling price in order to compete with Russia. Moreover, Saudi also pledged to increase the production further, which is expected to bring down the prices of crude oil further.