IGI Logo

The reduction in excise duty on petrol and diesel provided relief to the consumers, the Economic Survey 2021-22 said.

The Centre in early November slashed excise duties on petrol and diesel by Rs 5 and Rs 10 per litre, respectively. Taking cue from this, some states too followed suit.

"Reduction in central excise and subsequent cuts in VAT by most states has also helped ease petrol and diesel prices," the Survey said.

Retail prices of petrol and diesel are typically linked to the prices of crude oil.

The crude prices had fallen initially in FY22, but have been increasing in the last few months, and in January, hit a multi-year high of $90 per barrel.

"The dollar exchange rate was also on the upward trend and is hovering around Rs 75 per USD which was also impacting the prices of petrol and diesel," it added.

Domestic fuel prices have been steady across the country since early November.