To the consumers, there is no change, " the Finance Secretary said.
The October 2017 excise duty cut cost the government Rs 26,000 crore in annual revenue and about Rs 13,000 crore during the remaining part of the current fiscal year that ends on March 31, 2018. The excise duty on branded petrol has been reduced from Rs 7.66 to Rs 5.66 and branded diesel has been reduced from Rs 10.69 to Rs 8.69 per liter. Thus there is no change in the total excise duty.
In its summary, the Oil and Gas Regulatory Authority (OGRA) had proposed Rs2.98 per litre or 3.7 per cent increase in the price of petrol, while double digit increase of Rs10.25 per litre or 11.4 per cent in the rates of HSD, Rs12.74 per litre or 19.8 per cent in the price of Superior Kerosene Oil and Rs. 11.72 per litre or 20.1 per cent in the price of Light Diesel Oil for the month of February on the basis of increase in prices of petroleum products in the global market. Petrol price in Delhi was at 73.05 per litre while diesel price was at Rs 64.11 per litre on Thursday.
Value-Added Tax on petrol in Delhi is Rs 15.39 per litre while on diesel it is Rs 9.32.
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Oil marketing companies determine the prices of petrol and diesel on the basis of three factors.
"We are already on the cusp, in terms of oil prices".
Meanwhile, spokesperson of the prime minister has issued clarification relating to increase in the petroleum prices. The government, however, may choose to levy an additional cess on diesel and petrol.
The spike in crude prices would lead to a huge increase in the oil import bill. The first factor is the price of crude oil in the worldwide market, the second factor is the value of Indian Rupee against US Dollar at the time of import. Oil analysts expect the price to further go up to $80 per barrel, or even $100 per barrel.