AHMEDABAD: Providing relief to consumers and industry reeling under high fuel prices and inflation which is at a multi-year high, prices of petrol and diesel will reduce a bit from Sunday.
The Centre on Saturday announced excise duty cut on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre. Following this, the price of petrol will come down by Rs 9.61 per litre whereas diesel price will go down by Rs 7.23 per litre, according to senior officials in oil companies.
As on Saturday, petrol price has stabilized at Rs 105.08 per litre whereas diesel price has settled at Rs 99.43 per litre. If the same reduction is applied on fuel prices in Gujarat as it is, petrol price will stand at Rs 95.47 per litre whereas diesel will cost Rs 92.2 per litre, according to oil company sources.
This means, petrol price will come down by 9.2% whereas diesel will become cheaper by 7.3%.
The move will ease overall inflation on end consumers in a big way.
Prices of a lot of essential commodities have gone up significantly due to fuel price rise.
"Fuel prices impact most commodities as well as industrial processes directly or indirectly. With transport and logistics costs coming down, prices of FMCG products, milk, as well as other industrial raw materials will come down. Overall, this will impact overall economic situation positively," said Pathik Patwari, senior vice-president, Gujarat Chamber of Commerce and Industry (GCCI).
