Budget 2014: Govt to cut duty on premium petrol

NEW DELHI: Premium petrol could cost less if the government’s proposal to reduce excise duty on it by over Rs 5 per litre is implemented.

The government on July 10 proposed reducing central excise duty on branded petrol to Rs 2.35 per litre, according to the budget document.

“Central excise duty on branded petrol is being reduced from Rs7.50 per litre to Rs 2.35 per litre,” it said.

The proposal will benefit oil marketing companies as it will boost sale of premium petrol, which contains special additives to enhance performance of vehicles.

Sale of branded petrol had dropped abysmally as it attracted higher duties as compared with the normal variety.

A panel on Auto Fuel Vision & Policy 2025, led by Saumitra Chaudhuri, had last month recommended slashing duties on branded fuel.

"The 'branded' products are premium automotive fuels that result in improved engine life and better long-term mileage, and policy should encourage their use, not discourage it," the panel said in its report submitted to the oil ministry in June.