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Marginal cut in petrol, diesel prices
By Our Special Correspondent
NEW DELHI, JAN. 11. Even as the Government today raised steeply the excise duty on petrol and diesel, it simultaneously announced a marginal decrease in the retail prices of the two products. The price of petrol has been reduced by Rs 1.39 per litre while diesel prices will be down by eight paise a litre. The new rates will be effective from midnight tonight.
Earlier in the day, the Government issued a notification, increasing the excise duty on petrol and diesel to 90 per cent and 20 per cent (from 32 and 16 percent) respectively.
The new rates are as follows: In Delhi, petrol will cost Rs 27.54 a litre against Rs. 28.93 earlier, in Mumbai Rs. 30.79 against Rs. 31.90, in Chennai Rs. 29.74 against Rs. 30.67 and in Kolkata Rs. 27.99 against Rs. 29.21. In the case of diesel, the price in Delhi would be Rs. 17.09 a litre against Rs. 17.17 earlier, in Mumbai Rs. 20.71 against Rs. 20.79, in Chennai Rs. 18.60 against Rs. 18.65 and in Kolkata Rs. 17.47 against Rs. 17.54.
The Union Finance Ministry had already clarified that the hike in the duty would not be passed on the consumers and that the oil companies would absorb it. However, the marginal reduction in retail prices came as a surprise and is said to be on the basis of softening of international crude prices.
According to the Ministry notification, the new rates of excise would come into effect from January 12 and cease to have effect on April 1, 2002.
The notification follows an ordinance issued for giving the Government emergency powers to raise excise duties by more than twice the existing rate which was not permitted earlier as per the Central Excise Act.
While the exact amount of money the increased excise duties would garner for the Government is being worked out, the burden on the oil companies is expected to be around Rs 1,600 crores during the rest of the current fiscal year for which the Government intends to float bonds as a compensation measure.
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