On Friday, January 16, 2015, petrol price was reduced by Rs 2.42 per litre and diesel price by Rs 2.25 a litre effective from midnight of Friday/Saturday after a tax duty increment by the government restricted the advantages of the collapse in global crude costs to six-year lows.
The price reduction and excise hike will abrade the larger profit organisations like Indian Oil, Hindustan Petroleum and Bharat Petroleum whose primary income was dependent on petrol and diesel from this relieve of crude prices.
This will be the 9th cut to a square reduction of costs in the petroleum since August and 5th in diesel since October.
New rates will be efficacious by midnight of Friday/Saturday, Indian Oil Corp, the nation’s largest fuel retailer, announced.
Every non-branded petrol suppliers will now be charged an excise duty by Rs 8.95 a litre, while for branded ones it will be by Rs 10.10 a litre.
The four excise tax increments since November are said to produce profit about Rs 20,000 crore in additional revenue this financial year and will be able to aid the government meet its financially short target of 4.1% of the GDP.
In Delhi, petrol will now be available at the cost of Rs 58.91 a litre, which has been the lowest in three and a half years, as compared to Rs 61.33 a litre currently. Similarly, diesel will also be available at the cost of Rs 48.26 a litre in Delhi, which is the lowest since April 2013, as against Rs 50.51 now.
Petrol price in June was recorded as USD 115 per barrel. But accounting today’s deduction, gasoline price seem to have seen a cut short by Rs 14.69 per litre on a progressive basis since August, while diesel rates in five downward revisions have been slashed by a total of Rs 10.71 a litre.
Let’s hope that this New Year keeps up with this kind of nice decrements in expenditure and increments in earnings.