India hikes excise duty on petrol by record Rs 10, diesel by Rs 13
This is the second time since March that the Indian government raised duty on petrol and diesel.
NEW DELHI (Web Desk) - Indian government on Tuesday evening raised the excise duty on petrol by Rs 10 and on diesel by 13 per litre to recoup some of the loss of revenue suffered by the government due to the Covid-19 lockdown.
This will help garner Rs 1.6 lakh crore additional revenue as it repeated its time-tested formula of not passing on gains arising from a slump in international oil prices.
According to a notification issued by the Central Board of Indirect Taxes and Customs in India, special additional excise duty on petrol has been hiked by Rs 2 per litre and road cess has been hiked by Rs 8 a litre.
In case of diesel, special additional excise duty has been hiked by Rs 5 per litre and road cess has been raised by Rs 8 a litre.
With this, the total incidence of excise duty on petrol has risen to Rs 32.98 per litre and that on diesel to Rs 31.83.
The tax on petrol was Rs 9.48 per litre when the Modi government took office in 2014 and that on diesel was Rs 3.56 a litre.
Price in New Delhi for petrol is 71 Indian rupees (to buy one dollar 76 Indian rupee required). Diesel price per liter is 69 Indian rupees
This is the second time since March that the Indian government raised duty on petrol and diesel.
On March 14, the Centre had raised duties on petrol and diesel to Rs 3 per litre. That hike had raised the total central levies on petrol to Rs 22.98 per litre and on diesel to Rs 18.83 per litre. The retail price of the fuel had, however, remained unchanged because of the decline in crude prices.
Since March 16, oil companies have abandoned the practice of daily revision of the two fuel rates, making up for present and potential inventory losses.
