Petrol price hit a 55-month high of ₹ 74.50 a litre, while diesel rates touched a record ₹ 65.75, renewing calls for a cut in excise duty to ease the burden on consumers. “Excise duty cut would be a political call, but is not advisable if we have to stick to the fiscal deficit glide path outlined in Budget,” he said. “Every rupee cut of excise on fuel will result in a loss of Rs 13,000 crore to the government,” the official said, adding that the oil ministry has not yet officially asked for a cut in fuel excise duty. The official said states should cut VAT on fuel to ease the burden on the consumer. “One or two rupee increase doesn’t impact inflation.”The central government levies ₹ 19.48 a litre of excise duty on petrol and ₹ 15.33 per litre on diesel.

Source: The Hindu April 23, 2018 10:34 UTC