Centre Raised Excise Duty On Petrol by RS 10 per Litre and on Diesel by Rs 13; But No Changes In Prices.
The price hike will be absorbed by Oil Companies, so the change in the tax will not impact the retail sale price of petrol and diesel on account of the excise duty hike.
The government on Tuesday evening raised the excise duty on petrol by Rs 10 per litre and on diesel by 13 petrol litre to mobilise revenue collections at a time when the global oil prices are extremely low. The Changes in duties will come into effect from 6 May.
Central government official said the revenue generated from these duties shall be used for infrastructure and other development items of expenditure. Due to Covid-19 government already suffered huge loss in revenue.
Two separate official notifications said that additional excise duty on petrol has been raised by Rs 8 and special additional excise duty of Rs 2 a litre has also been levied on it to give effect to a Rs 10 a litre increase on petrol. In the case of diesel, additional excise duty has been raised by Rs 8 and special additional excise duty by Rs5. The changes are effective from Wednesday i.e from 6 May.