Modi Govt Hikes Excise Duty On Petrol By Rs 10 Per Litre, Diesel By Rs 13; Retail Price Unchanged

On May 5, the government raised the excise duty by a record Rs 10 per litre on petrol & Rs 13 per litre on diesel. Decision taken to garner Rs 1.6 lakh crore additional revenue. The government repeated its time-tested formula of not passing on gains arising from a fall in global oil prices. What comes as a relief for the common man is that retail prices of petrol & diesel will not be impacted by the tax changes. Reportedly, state-owned oil firms will adjust them against the recent dip in oil prices. As per a notification issued by the Central Board of Indirect Taxes and Customs, special additional excise duty on petrol has been hiked by Rs 2 per litre & road cess by Rs 8 a litre. As far as diesel is concerned, special additional excise duty has been hiked by Rs 5 per litre & road cess by Rs 8 a litre. Therefore, in all, excise duty on petrol has risen to Rs 32.98 per litre & on diesel to Rs 31.83. Reportedly, the Centre has taken this step to raise some revenue as the nation deals with coronavirus crises.

(The above story first appeared on LatestLY on May 06, 2020 11:17 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).