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Petrol, diesel prices cut; excise hiked

The government on Friday announced a cut in petrol prices by Rs 1.39 a litre and diesel by up to 8 paise a litre despite the increase in excise duty.

Petrol in Delhi would now cost Rs 27.54 as against Rs 28.93 and diesel Rs 17.09 instead of Rs 17.17, Petroleum Minister Ram Naik announced in New Delhi.

The new rates would be effective from midnight of January 11-12.

Earlier, the government announced a steep hike in excise duty on petrol from the present 32 per cent to 90 per cent, while increasing the levy on diesel moderately from 16 per cent to 20 per cent.

The new rates of excise would come into effect from January 12, said a finance ministry notification.

The duty hike on the petroleum products, however, will not affect their administered prices as they will not be passed on to the consumers, a government statement said.

The notification would cease to have effect from April 1.

The notification follows an ordinance issued for giving finance ministry emergency powers to raise excise duties without going through the budgetary process.

Earlier in the day, Finance Minister Yashwant Sinha and Petroleum Minister Ram Naik had met to discuss the issue of raising excise duties on petroleum products.

Following will be the price of petrol and diesel in the four metros after Friday's reduction:

Petrol:
City-----------------New price ------ Old price/litre -----Difference
Delhi ------------- Rs 27.54 ---------- Rs 28.93 ------- Rs 1.39
Mumbai ---------- Rs 30.79 ---------- Rs 31.90 ------- Rs 1.11
Chennai ---------- Rs 29.74 ---------- Rs 30.67 ------- Rs 0.93
Kolkata ---------- Rs 27.99 ---------- Rs 29.21 ------- Rs 1.22

Diesel:
City----------------New price ------ Old price/litre -------Difference
Delhi ------------- Rs 17.09 ---------- Rs 17.17 ------- Rs 0.08
Mumbai ---------- Rs 20.71 ---------- Rs 20.79 ------- Rs 0.08
Chennai ---------- Rs 18.60 ---------- Rs 18.65 ------- Rs 0.05
Kolkata ---------- Rs 17.47 ---------- Rs 17.54 ------- Rs 0.07

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