Govt hikes excise duty on petrol by Rs 10/L, diesel by Rs 13/L

Central Government has increased excise duties by Rs 10 per litre on petrol and Rs 13 per litre on diesel. Retail sale prices of petrol and diesel will, however, not change on account of this increase in duties. These duty rate changes shall come into effect from 6th May, 2020.

New Delhi: The government on Tuesday night hiked the excise duty on petrol by steep Rs 10 per litre and that on diesel by Rs 13 a litre.

Retail sale prices of petrol and diesel will, however, not change on account of this increase in duties. These duty rate changes shall come into effect from 6th May, 2020.

The government has raised the additional excise duty in the form of road cess on petrol and diesel by Rs 8 per litre.

It has also raised special additional excise duty on petrol by Rs 2 per litre and diesel by Rs 5 per litre. The centre would, however, get a tax bonanza and gain in excess of Rs 1,75,000 crore for full year.

The price hike will be absorbed by Oil Marketing Companies leading to no increase in retail prices of fuel at the pump.

The hike in duty has taken away gains from falling global crude oil prices.

Last month, benchmark Brent crude oil dropped to as low as USD 18.10 per barrel - the lowest since 1999, as coronavirus wiped away demand, creating large surpluses around the globe.

Prices have since rebounded to around USD 28 a barrel.

(PTI Report)