By Admin 
Petrol-Diesel Price: Amidst the fluctuations in the prices of petrol and diesel, the government has given great relief to the general public. Today, on March 27, the Government of India has made a huge cut in the excise duty on petrol and diesel. The government has reduced the additional excise duty on petrol to Rs 3 per liter from the earlier Rs 13 per litre.
At the same time, the duty of Rs 10 on diesel has been completely reduced. This step has been taken amid increasing pressure due to international crude oil prices crossing the range of $ 100 per barrel and tensions in the Middle East.
Despite the reduction in cess, there is currently no change in the prices of petrol and diesel in various states of the country. The government has made this cut so that oil companies do not put additional burden on the public and do not increase prices. Meanwhile, the central government has appealed to all the states to reduce their VAT so that the public can get the direct benefit of the reduction in excise duty of Rs 10.
Potential of petrol and diesel in major cities and states of the country
| city/state | Petrol (per litre) | Diesel (per litre) |
| Delhi | Rs 94.77 | Rs 87.67 |
| Maharashtra | Rs 103.54 | Rs 90.03 |
| Uttar Pradesh | Rs 94.65 | Rs 87.76 |
| Karnataka | Rs 102.92 | Rs 90.99 |
| west bengal | Rs 105.45 | Rs 92.02 |
| Rajasthan | Rs 104.88 | Rs 90.36 |
| Himachal Pradesh | Rs 95.27 | Rs 87.31 |
| Haryana | Rs 95.36 | Rs 88.40 |
| Guwahati | Rs 93.23 | Rs 89.46 |
| Dehradun | Rs 93.17 | Rs 88.01 |
| port blair | Rs 82.46 | Rs 78.05 |
| Andhra Pradesh | Rs 109.53 | Rs 95.70 |
These could be the reasons for keeping the prices stable today even after reducing the cess:-
- Internationally, the price of crude oil has crossed $100 per barrel. Increase in the cost of crude oil due to ongoing tension in the Middle East and reduced supply from OPEC countries.
- Indian oil companies like IOC, BPCL, HPCL were not increasing oil prices for a long time despite the increase in international prices. They were incurring losses due to this. The government has reduced taxes so that their losses are compensated and they do not have to increase prices for the public.
- Even though government companies have kept the prices stable, private companies like Nayara Energy have increased the price of petrol by Rs 5.30 and diesel by Rs 3 to increase their profits.
How much relief will be provided by the cut in cess?
If companies decide to pass on the full benefit of the central government’s tax cut of Rs 10 per liter to customers, then the price of petrol and diesel can come down by Rs 10-12. However, state governments levy VAT on the final price of petrol and diesel. If there is a reduction of Rs 10 in the basic price, then the VAT applicable on it will also be reduced. This is expected to provide relief of Rs 10-12.
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