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The two reductions together had brought down the excise duty on petrol and diesel prices by a total of Rs 13 and Rs 16 per litre, respectively. After the second duty cut, BJP-governed states also implemented matching cuts in VAT to soften the impact of global oil prices.
![Screenshot 2024-03-15 005246](https://static.toiimg.com/thumb/imgsize-23456,msid-108503580,width-600,resizemode-4/108503580.jpg)
Technically, fuel retailers are free to decide retail prices of petrol and diesel. But in practice, govt informally casts a long shadow. The recent fall in oil prices had turned petrol and diesel profitable for retailers but they were waiting for a signal. That is how prices have been held steady since the last reduction in 2022 even though fuel had switched between becoming loss-making and profitable proposition for various stretches of time in between.
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