The Indian government has announced a raise in excise duty on Petrol and Diesel by Rs. 1.50 to aid in achievement of fiscal for this year. The Excise duty is split into four components namely – Special Excise, Basic Excise, Cess on Excise and Additional excise. The excise duty levied on fuel is a fixed amount on each liter.
Based on a government notification basic excise duty on normal petrol has been hiked from Rs. 1.20 per liter to Rs. 2.70, whereas unbranded diesel price has been raised from Rs 1.46 a litre to Rs 2.96 per litre. As for branded petrol with additives the duty has been raised from Rs 2.35 to Rs 3.85, whereas branded diesel has been raised by Rs. 3.75 Lakhs to Rs. 5.25 Per liter.
A further dip in petrol and diesel prices was expected as international crude oil prices have been declining swiftly. But owing to an increase in excise duty, the chances of prices coming down are very slim. Speaking more on the occasion Ashok, chairman of the country's largest refiner-marketer IndianOil said, “As and when we look at price revision, whenever it is due, we will look at the situation and decide on revising rates then.” As of now, fuel prices remain the same, and shall remain so for atleast about a week.
