Jaitley rules out cut in excise on petrol, diesel despite soaring prices

New Delhi: Despite prices of petrol and diesel continuing to escalate, Finance Minister Arun Jaitley on Wednesday ruled out any cut in excise duties on petroleum products.

Reiterating the government’s stand on not slashing excise duty on petroleum products, the finance minister said “We need excise revenues to push public investment, and if any state wants to reduce excise they can do so”.

Jaitley made this statement while briefing the media about the Union Cabinet meet that took place on Wednesday.

While a litre of petrol in Mumbai on Wednesday sold for Rs 79.63, the same was selling for Rs 73.10 in Chennai, Rs 73.26 in Kolkata and Rs 70.52 in Delhi – the highest in nearly three years. Jaitley attributed the spike to a temporary surge in global prices caused by the hurricanes Irma and Harvey.

Petroleum Minister Dharmendra Pradhan last week had favoured the inclusion of petrol and diesel under the ambit of the Goods and Services Tax (GST). “GST is the only way to have a rational price mechanism in petroleum products. There will be tax predictability if petroleum products are brought under GST”.