FM announces excise duty hike, petrol, diesel to go up
Petrol and diesel prices are set to increase from Friday midnight as Finance Minister Nirmala Sitharaman announced an additional special excise duty (SAED) of Re 1 and a road and infrastructure cess of Re 1 per litre on both the transport fuel while presenting the Union Budget 2019-20.
Currently, an SAED of Rs 7 per litre is charged on both branded and un-branded petrol and Re 1 per litre on diesel. Also, road and infrastructure cess of Rs 8 per litre is being charged on both the fuel.
The previous Budget of 2018-19 had cut basic excise duty on petrol and diesel by Rs 2 per litre. However, the move was offset by an additional levy of Rs 8 per litre under the levy of road and infrastructure cess on both petrol and diesel.
Domestic fuel prices vary in tandem with global crude and product prices on a daily basis. Last year, fuel prices surged to record levels and the Centre and states faced severe criticism over high excise duty and state levies.
In October, the government had cut excise duty to moderate the effect of rising oil prices. But this cut came after the government had raised excise duty on petrol and diesel on nine occasions, almost doubling its revenue from the oil sector.
On Friday, petrol and diesel prices in the national capital are currently Rs 70.51 and Rs 64.33 per litre, respectively.IANS