New Delhi, Oct. 4 (PTI): The Petrol price was on Wednesday cut by Rs. 2.5 a litre and diesel by Rs. 2.25 following a reduction in excise duty on auto fuels. Petrol in Delhi now costs Rs. 68.38 a litre, down from Rs. 70.88. A litre of diesel will now cost Rs. 56.89, against Rs. 59.14 previously, according to Indian Oil Corporation (IOC).
On Tuesday, the government cut the excise duty on petrol and diesel by Rs. 2 a litre each to moderate the relentless rise in fuel prices over the last three months. IOC Director (Finance) A K Sharma said the cut in retail selling price was higher after factoring in its impact on the VAT. As things stand, excise duty is levied on fuel produced ex-refinery. Local sales tax or the VAT is levied on the total of ex-refinery cost plus excise duty and commission paid to dealers.
