Duty cut on petrol, diesel not to affect retail prices: Chidambara

New Delhi, Feb 28 (UNI) There will be no change in the retail prices of petrol and diesel following the duty cut announced in today's Budget, according to Finance Minister P Chidambaram.

The duty cut had been factored into the reduction in the retail prices of petrol and diesel by Rs 2 and Re 1 a litre respectively made two weeks ago, the Minister clarified.

Addressing a post-Budget press conference, Mr Chidambaram said that when the decision was taken on reducing the retail prices of petrol and diesel it was agreed that the Revenue would bear a part of the burden.

But the duty cut was not made simultaneously as the Budget was just a fotnight away, he said.

The ad valorem component of excise duty on petrol and diesel was reduced from 8 per cent to 6 per cent in the Budget.

Mr Chidambaram said any future change in the retail prices of the two fuels would be made on the basis of the fluctuations in the international oil market.

UNI