Petrol and diesel may be cheaper by up to 4 rupees despite the increase in Excise Duty, the report reveals

Despite the increase in excise duty, petrol and diesel prices may still be cut further. Petrol and diesel can slip by Rs 4.25 and Rs 3.75 per liter, respectively, against their current levels. This has been revealed in a recent report by SBI EcoRap. On Thursday, the price of petrol in Delhi was Rs 69.63 and diesel was Rs 62.33 per liter. 

Crude oil prices have recorded a record decline due to the outbreak of Corona virus globally. The price of crude oil also fell below $ 30 per barrel at this time. Meanwhile, last week, the government increased excise duty on petrol and diesel by three rupees per liter. 

According to the SBI ECORAP report, if the government did not increase the excise duty on petrol and diesel, then it was possible to reduce their prices by Rs 10-12 per liter. But now this decline is possible up to Rs 4.25 per liter in petrol and Rs 3.75 per liter in diesel. 

For the last three days, the price of petrol is stable at Rs 69.63 per liter. Petrol prices have come down by about Rs. 5.50 per liter as compared to January. On January 1 this year, the price of petrol was Rs 75.18 per liter. According to the report, the price of crude oil is currently at $ 27 per barrel and it will be a relief for both the government and retail consumers if the price of crude oil is around it in the first half of FY 2020-21.