Feb 1, 2016: Marginal reduction in petrol and diesel prices

Fuel prices have been reduced marginally in India from the midnight of February 1, 2016. While the price of petrol has been cut by 4 paise per litre, the price of diesel has been lowered by 3 paise per litre. In Delhi, petrol now costs Rs. 59.95 per litre and diesel costs Rs. 44.68 per litre.

This is the third reduction in prices of petrol and diesel in 2016. Earlier, fuel prices were slashed in January 16 & 1, 2016, as well as on December 16 & 1, 2015.

Fuel prices are revised every fortnight, based on international rates and the Rupee - US Dollar exchange rate.

While the global prices of crude oil warranted a much greater reduction in fuel prices, the Government of India, has increased the excise duty on petrol and diesel by Re. 1 and Rs. 1.50 respectively, preventing the fuels from getting too much cheaper. This is the third hike in excise duty in a month. Collectively, the three hikes are expected to bring the government additional revenue of Rs. 17,000 crore.

Source: Indian Express