After nearly 18 months, the Union government decided to reduce the exorbitant rates of tax on petrol and diesel. The cut of Rs 5 per litre on petrol and Rs 10 per litre on diesel will provide relief to millions of Indian consumers.

       But as with any tax cut, this will hit the government’s treasury. But by how much? A Business Standard analysis shows that the Centre will lose close to Rs 35,000 crore from the decision. Sounds like a big loss to the exchequer, but this amount will remain in the consumers’ pockets for consumption in the remaining part of the financial year. ...