New Delhi [India], Feb 1 (ANI): Finance Secretary Hasmukh Adhia on Thursday clarified that the proposed reduction of excise on petrol and diesel will not have any significant impact on the final price of these products.
"Rs 2 worth excise on petrol and diesel is being reduced and is being converted into cess. That is the only change we have made; practically there is no impact on the final price of petrol and diesel. To the consumers, there is no change," he said while addressing a press conference here.
"We are already on the cusp, in terms of oil prices. If the future demands, we may consider slashing excise duty on petrol and diesel,' he added.
On Monday, Chief Economic Adviser Arvind Subramanian stressed on the importance of implementing rising oil prices, which are expected to have a detrimental impact on India's inflation, Gross Domestic Product (GDP) and consumption levels.
Addressing a press conference post the presentation of the Economic Survey 2017-18 here, Subramanian said the present oil prices had impacted government finances and held back real economic activity.
"This year, oil prices went up significantly, and affected consumption, government finances and held back real economic activity. If this continues, GDP growth will drop, and inflation will spike in the coming quarters," he said.