Petrol tax slashed, but you aren’t getting full relief
NEW DELHI: Consumers were in for a shock on Sunday as the reduction in petrol prices thanks to the excise duty cut was lower than they had thought. Vehicle users in Delhi were expecting Rs 9.50 cut in petrol prices but the reduction was only Rs 8.69. Consumers in other cities also had to shell out more than expected. Reason: the state-owned oil marketing companies (OMCs) raised the base price of petrol overnight, which jacked up the net retail price.
OMCs update the base price as and when backend crude and refining prices change. According to the price notification of OMCs, the oil companies increased the base price on petrol by 58 paise, making petrol almost Rs 1 dearer. Following the hike in base price, the petrol costs Rs 96.72 per litre in Delhi, instead of Rs 95.91 per litre. It means people in Delhi were paying 81 paise per litre more at petrol pumps.
Finance Minister Nirmala Sitharaman had on Saturday announced slashing the Central excise duty on petrol by Rs 8 per litre and Rs 6 per litre on diesel. She claimed it would reduce the price of petrol by Rs 9.5 per litre and of diesel by Rs 7 per litre in Delhi.
