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Fuel prices fall across India after excise duty cut

Agencies
23 May 2022 00:00:00 | Update: 23 May 2022 01:08:12
Fuel prices fall across India after excise duty cut

After a gap of 45 days, fuel prices came down on Sunday May 22, 2022 after Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by 8 per litre and 6 rupees per litre on diesel on Saturday evening.

This cut led to a reduction of Rs9.5 a litre on petrol in Delhi and Rs7 a litre in diesel after taking into account its impact on other levies. Petrol prices in Delhi today came down to Rs96.72 a litre as against Rs105.41 a litre earlier. Diesel in the national capital now costs Rs89.62 a litre as against the earlier prices of Rs96.67 per litre.

In Mumbai after the excise duty cut, petrol now costs Rs111.35 per litre while diesel is priced at Rs97.28 a litre.

The excise duty cuts along with Rs5 cut on petrol and Rs10 reduction on diesel which was implemented from November 4, 2021, rolls back the Rs13 per litre and Rs16 per litre increase in taxes on petrol and diesel, respectively, effected between March 2020 and May 2020 to avoid passing on to consumers the sharp fall in international oil prices.

Fuel prices though are still the highest in Mumbai among the four metro cities.

Fuel rates vary from state to state depending upon the incidence of local taxation.

Meanwhile the Petroleum Ministry’s Petroleum Planning and Analysis Cell’s (PPAC) latest report released on May 20, 2022 shows that the price of crude oil (Indian Basket) remained high at $107.15 per barrel on May 19, 2022 at an exchange rate (Rs/$) of Rs.77.70.

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