Excise duty on petrol to be waived to avoid price hike

New Delhi, Apr 5: The government is likely to reduce the excise duty on petrol in a bid to help oil companies recover Rs 8,000 crore of under-recoveries.

Sources reveal that the government is considering the oil ministry's proposal to reduce duty on petrol.

The government at present levies an excise duty of Rs 14.45 per litre of petrol. Reports reveal that oil companies are losing over Rs 9 per litre by selling petrol below the international price. The excise duty on petrol was lowered by Rs 1 per litre in 2008 by the government when the international crude price had touched $135.

The government's move to cut down the excise duty at the beginning of the year is sure to bring down the revenue target.

Meanwhile, Goa is witnessing a boost in sale of petrol after the prices were slashed down, said officials.

According to officials, various petrol outlets are seeing a two-fold increase in petrol sale.

OneIndia News