The Government of India decides to reduce the Basic Excise Duty rate on Petrol and Diesel [both branded and unbranded] by Rs. 2 per litre with effect from 4th October, 2017; This major decision has been taken by the Government in order to cushion the impact of rising international prices of crude petroleum oil and petrol and diesel on Retail Sale Prices of Petrol and Diesel as well as to protect the interest of common man.
The Government of India has decided to reduce the Basic Excise Duty rate on Petrol and Diesel [both branded and unbranded] by Rs. 2 per litre with effect from 4th October, 2017. This decision has been taken by the Government in order to cushion the impact of rising international prices of crude petroleum oil and petrol and diesel on Retail Sale Prices of Petrol and Diesel as well as to protect the interest of common man.
The Revenue loss on account of these reductions in excise duty is about Rs. 26,000 crore in a full year, and about Rs. 13000 crore during the remaining part of the current financial year.
Earlier due to the increase in the international prices of Petrol and Diesel, during the last few weeks, the Retail Selling Prices (RSP) of Petrol and Diesel at Delhi have risen to Rs. 70.83/litre and Rs. 59.07/litre respectively, as on 2nd October 2017. This rise in the prices of Petrol and Diesel is also reflected in WPI inflation, which has increased to 3.24% for the month of August 2017, as compared to 1.88% for the month of July 2017.This also prompted the Government to act swiftly in this regard.
In the past few weeks, the prices of Petrol and Diesel have been rising due to increase in their prices in the international market. The retail selling prices of Petrol and Diesel have touched Rs 70.88 per/ litre and Rs 59.14 per litre respectively at Delhi on October 3, 2017. As a result of reduction in excise duty, the decrease in prices of Petrol and Diesel will be Rs 2.50 per litre and Rs 2.25 per litre respectively at Delhi.
The Government is monitoring the developments in the prices of Petrol and Diesel in the international as well as domestic market. In view of coming agricultural season – harvesting of Kharif crops and sowing of Rabi crops; and in the interest of consumers, the Prime Minister Shri Narendra Modi has taken the decision for giving relief to the farmers and consumers in general. The Government stands committed to take all necessary steps to protect the wellbeing of consumers in the country.
State Governments are also being requested to make reduction in VAT imposed by them on Petrol and Diesel so as to give more relief to consumers.
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MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION No. 22/2017-Central Excise
New Delhi, the 3rd October, 2017
G.S.R. 1217(E).—In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 11/2017-Central Excise, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 793(E), dated the 30th June, 2017, namely:
In the said notification, in the Table,
(i) in serial number 2,‑
(a) against item (i) of column (3), for the entry in column (4), the entry “Rs. 6.48 per litre” shall be substituted;
(b) against item (ii) of column (3), for the entry in column (4), the entry “Rs. 7.66 per litre” shall be substituted;
(ii) in serial number 3,‑
(a) against item (i) of column (3), for the entry in column (4), the entry “Rs. 8.33 per litre” shall be substituted;
(b) against item (ii) of column (3), for the entry in column (4), the entry “Rs. 10.69 per litre” shall be substituted.
2. This notification shall come into force with effect from the 4th October, 2017.
[F. No. 354/123/2014-TRU(Pt-1)]
RUCHI BISHT, Under Secy.
Note : The principal notification No. 11/2017-Central Excise, dated the 30th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 793(E), dated the 30th June, 2017.
While the decision of the Govt. Of India is appreciated, I wonder if the pricing could be more simplified.