Petrol, Diesel to Get Cheaper? Govt Planning to Cut Taxes On Fuel, Says Report

In all other metros, petrol is over Rs 90 a litre-mark while diesel is well over Rs 80 a litre.

New Delhi: In a bid to provide relief to the common man, the Narendra Modi-led government is reportedly planning to cut excise duties on petrol and diesel. “We are discussing ways in which prices can be kept stable. We will be able to take a view of the issue by mid-March,” one of the sources reportedly said. Moreover, it asserted that the government wants oil prices to stabilise before cutting taxes, as it does not want to be forced to change the tax structure again, should crude prices rise further.

Fuel rates Touching Record Highs

Notably, the rates of petrol and diesel rates are touching record highs across the country for the past few weeks. The government has raised taxel on fuel twice in the last 12 months to boost sagging tax revenues. The increase in the previous weeks has taken petrol to cross historic high levels of Rs 100 a litre in several cities across the country.

Petrol Above Rs 90 Per Litre in Metros

In all other metros, petrol is over Rs 90 a litre-mark while diesel is well over Rs 80 a litre. However, in Mumbai, the petrol price is just Rs 2.4 per litre short (Rs 97.57 a litre) of touching the three-digit mark of Rs 100 per litre for the very first time ever. Diesel price in the city is closing on Rs 90 a litre (Rs 88.60 a litre).

Finance Ministry Swings into Action

Reports also claimed that the Finance Ministry is consulting some states, oil companies and the oil ministry to find the most effective way to lower the tax burden on consumers without government finances taking a big hit.