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Thursday, Sep 12, 2002

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Petrol, diesel may cost 40 paise more

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NEW DELHI, Sept. 11

CONSUMERS may have to fork out 30-40 paise extra per litre of petrol and diesel in the wake of the recent spurt in global crude prices.

Official sources said that this can, however, happen if the Finance Ministry endorses the Petroleum Ministry's proposed case that a marginal two per cent cut in excise duties on diesel and petrol would be a revenue-neutral exercise - the base for computing the excise duty would rise and then be offset by the drop in the duty rate.

"If the proposal for a marginal drop in excise duties is not accepted, the retail price rise would be in the region of over Re 1 per litre in the case of both petrol and diesel. This would enable the oil marketing companies to help align their costs with the selling prices of products," official sources said.

Even after the proposed hikes in both cases, the oil marketing companies would be losing around 10-30 paise per litre on both the products.

The Petroleum Minister, Mr Ram Naik, will be convening an internal meeting on September 13 to finalise the details.

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