- Petrol excise duty hiked by Rs 10 litre
- Diesel excise duty increased by Rs 13
- Retail prices will be unaffected
The Government of India has hiked the excise duty on petrol by a whopping Rs 10 per litre. The hike of Rs 13 per litre has also been applied on diesel.
The retail prices of petrol and diesel will not be impacted due to the excise duty hike as the oil firms will adjust the changes against the drastic fall of oil prices. According to the notification, the special additional excise duty on petrol has been hiked by Rs 2 per litre whereas the road cess has been hiked by Rs 8 a litre.In case of diesel, special additional excise duty has been hiked by Rs 5 per litre and road cess has been raised by Rs 8 a litre. As a result, the total rise of excise duty on petrol has risen to Rs 32.98 per litre and that on diesel to Rs 31.83.
The government is expected to rake in around Rs 1.6 lakh crore through this exercise. The COVID-19 lockdown has affected the government revenue by a large margin. The government is likely to use the revenue generated from the duty hike to fund its various infrastructure and other developmental expenditure.
