New Delhi, Feb 1: Presenting the Budget 2018 on Thursday, Finance Minister Arun Jaitley announced a Rs 2 cut in the basic excise duty on petrol and diesel. The government also decided to do away with an additional excise duty on fuel by Rs 6. However, despite all these deductions prices of the two major petroleum products will not come down. Also Read - Diwali Bonanza: Petrol, Diesel Prices May Bring Relief to Customers in November

On the one hand the government announced a cut in excise duties and on the other it introduced a new road cess of Rs 8 per litre on petrol. Also Read - Petrol, Diesel Prices Unchanged Since a Month; Sales Exceed Pre-Covid Levels

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“Rs 2 excise on petrol and diesel is being reduced and this is being converted into cess, that is the only change we have made, practically there is no impact on the final price of petrol and diesel. To the consumers, there is no change,” Finance Secretary Hasmukh Adhia explained during a press conference after Arun Jaitley’s budget speech.

Meanwhile, petrol prices approached a three-and-a-half-year high in Delhi on Thursday at Rs 73.05 per litre. The previous high in the national capital was Rs 73.60 a litre in July 2014, data from the Indian Oil Corp showed.

On Wednesday, price of petrol in the city was Rs 72.92 per litre. (Also Read: Budget 2018: Hike in Gold, Silver Prices Likely to Impact Wedding Season)

In the other key metros of Kolkata, Mumbai and Chennai, petrol prices reached landmark levels on Thursday with prices at Rs 75.74, Rs 80.91 and Rs 75.77 per litre.

The previous highs in the cities were Rs 76.14 (Kolkata, August 2014), Rs 81.75 (Mumbai, July 2014) and Rs 75.78 (Chennai, August 2014).

(With inputs from agencies)