Excise duty on petrol and diesel in India was hiked on Saturday. The hike figure was recorded to Rs. 3 per litre. The special excise duty on petrol was hiked to Rs.8 per litre from the earlier figure of Rs. 2 per litre. The same thing went up to Rs. 4 per litre for diesel. The Road Cess was also increased by Rs.1 per litre for petrol and diesel. The new figure stands at Rs. 10 per litre for both of them!
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Though the excise duty on petrol and diesel was hiked the overall rate of the fuels available in India will remain the same as most of it would be adjusted against the fall in rates that would have necessitated because of the slump in international oil prices.
After the excise duty on petrol and diesel have hiked, the new duty is Rs 22.98 per litre for petrol and that on diesel to Rs 18.83. All of us know that the fuel prices in India change on a daily basis. The prices were cut by 13 paise and 16 paise respectively in order to adjust the excise duty hike against the drop in the international crude oil prices.
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The excise duty on petrol and diesel has always been changed to neutralise the international crude oil prices. The crude oil prices have halved since January to USD 32 per barrel. The prices of the fuels have also come down now by more than Rs. 6 per litre. Petrol cost was recorded at about Rs 76.01 a litre on January 11, 2020. This came down to Rs 69.87 a litre on March 14. Talking about the diesel prices, the current price is Rs.62.58 per litre which was earlier recorded at Rs. 69.17.
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The price will remain the same for the consumer as the government has decided not to pass on any part of the hike to the consumers.
