Govt hikes excise duty on petrol, diesel by Rs 3 per litre
Government hikes excise duty on diesel and petrol by Rs-3 per litre, as it will increase Government annual revenue by Rs-39,000 crore.
On Saturday, Excise duty on diesel and petrol has been raised by Rs-3 per litre as government to mop up gains arising from slump in International oil prices. According to a notification issued by Central Board of Indirect Taxes and Customs, In case of petrol, special excise duty has been raised by Rs 2 to Rs - per litre and in case of diesel Rs-4 per litre.
Additionally road cess was raised by Re-1 per litre on both petrol and diesel to Rs-10. After the hike, the total incidence of excise duty on petrol has raised to Rs-22.98 per litre and on diesel to Rs-18.83 per litre.
This hike in excise duty or petroleum and diesel, the Government is set to pick up Rs-39,000 crore additional revenue. Industrial official said that, this raise will not cause a rise in retail prices of petroleum in the country as state owned oil firms have adjusted themselves against fall in the International oil prices.
Petrol and diesel prices which are changed in daily basis, were cut by 13 paise and 16 paise respectively. New cost of diesel is Rs-62.58 and of petrol is RRs-67.87 per litre in Delhi.
The prices of petrol and diesel would have increased due to this hike in excise duty in normal cases but in this case they have been adjusted to a drop of prices in International oil markets in recent days.
According to officials, the rise is excise duty will increase Government revenues by almost 2,000 crore during the remaining three weeks of current fiscal year and annually it will increase the additional Government revenues by Rs-39,000 crore.