Excise duty on fuel may be cut by Rs 1-1.5 to ease retail prices of petrol

The government is better placed to consider a cut in the new fiscal year. A reduction now will not impact the fiscal deficit numbers for 2017-18, expected to be 3.4%

The government is considering a second slash in excise duty on petroleum products this year. The reduction in excise duty could range between Rs 1 and Rs 1.50. The recommendation to slash duty was made by the Bharatiya Janata Party (BJP) to ease retail prices of petrol and diesel.

Narendra Taneja, convenor of the BJP’s energy cell, confirmed the move. “I have suggested a cut of Rs 1.50 in the basic excise duty and I understand that the petroleum ministry is in talks with the finance ministry,” he said.

If implemented, the move would reduce prices of both products. The