NEW DELHI: Excise duty cuts combined with VAT (value-added tax) reduction by states kept fuel inflation in check amid flaring oil prices, the Economic Survey said on Tuesday but did not raise hopes of immediate reduction in pump prices.
Inflation in the ‘fuel and power’ grouping in the WPI (wholesale price index) was mostly driven by high oil prices, prompting the government to respond by calibrating the excise duty on petrol and diesel, the government’s report card on the economy said.
In the first round, excise duty was cut on petrol by Rs 5 per litre and diesel by Rs 10 from November 4, 2021. In the second round, duty on petrol was slashed by Rs 8 per litre and diesel by Rs 6 from May 22, 2022.
