Excise duty on petrol hiked by Rs 0.37 per litre, diesel by Rs 2

This is the second time in less than three weeks that excise duty is being hiked to make use of the slump in oil prices to garner resources for the government without burdening consumers.

By: PTI | New Delhi | Published:January 2, 2016 5:39 pm

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Government on Saturday hiked excise duty on petrol by Rs 0.37 per litre and by Rs 2 a litre on diesel, the second increase in duties in just over two weeks, to mop up a little less than Rs 4,400 crore.

However, there will be no increase in retail selling price of petrol and diesel as state-owned oil firms had not passed on the full benefit of a reduction in international oil prices to consumers on January 1.

Basic excise duty on unbranded or normal petrol has been increased from Rs 7.36 per litre to Rs 7.73 and the same on unbranded diesel from Rs 5.83 to Rs 7.83 per litre, a notification of the Central Board of Excise and Customs (CBEC) said.

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The increase in excise duty will fetch the government over Rs 4,300 crore on diesel and about Rs 80 crore on petrol.

This is the second time in less than three weeks that excise duty is being hiked to make use of the slump in oil prices to garner resources for the government without burdening consumers.

The government had from December 17 raised excise duty on petrol by Rs 0.30 per litre and Rs 1.17 a litre on diesel to garner Rs 2,500 crore.

Taken together with the November 7, 2015 increase in excise duty on petrol of Rs 1.60 per litre and diesel by 30 paise to raise Rs 3,200 crore, this is the third hike in levies this fiscal.

In the three increases, the government is expected to mop up over Rs 10,000 crore to meet its budgetary deficit.

Prior to these, the government had in four installments raised excise duty on petrol and diesel between November 2014 and January 2015 to lessen the reduction in retail rates, which followed falling international oil rates.

The four excise duty hikes during this period totalled Rs 7.75 per litre on petrol and Rs 6.50 a litre on diesel. It led to about Rs 20,000 crore in additional revenue to the government, helping it meet its fiscal deficit target.

If the government would not have raised these duties, consumer price of petrol and diesel should have been lower by 10.02 a litre and Rs 9.97 per litre respectively.

Petrol currently cost Rs 59.35 per litre in Delhi while diesel costs Rs 45.03 a litre.

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  1. मनीष
    Jan 3, 2016 at 5:08 am
    Every time when India is terrorized by stanis, Indian Muslims have provided support to those stani terrorists. Enough is enough. Excluding the SICKulars, any Indian who wants to contribute to the war against terrorism in India, should stop buying things made in an Islamic country and stop doing business with a Muzzie owned store/business. You have to act!
    1. L
      Lovely Tiger Raja Rajan
      Jan 2, 2016 at 12:52 pm
      Brent crude oil was up 3% at $37.60 per barrel for the day but down 35% over the year. U.S light crude was 1.2% higher at $37.04 but down 30% for the year. The giant drop in oil prices - from $108 to $37 in just 18 months (Jul-2014 to Dec-2015) is so immense, but still petrol is being in India at around Rs.60 to Rs.63 in most Indian Metros. THAT IS A 70%, i repeat again, THAT IS A 70% decrease. Then why is the price of petrol very high? Who will explain this ridiculous calculations or bers from the government? Who are the culprits getting favored by these bers. Why the public are dumb and mute spectators?
      1. A
        Jan 2, 2016 at 2:29 pm
        This is called Good Governance. Modi is proving worse than UPA on all fronts with his crooked, cunning and cleverliness approach to common man. A wolf in the garb of goat.
        1. M
          Jan 2, 2016 at 4:36 pm
          when the crude prices gets lower,excise duty rises without ping the full benifit to the consumers....what will happen if the crude prces rises? However the LPG prices have not been lowered for the domestic consumers? government should explain for reytainig the LPg prices.
          1. N
            Niladrinath Mohanty
            Jan 2, 2016 at 2:20 pm
            So far as common man is concerned Modi Govt. is no better than the two UPA Govts.
            1. P
              Jan 2, 2016 at 12:44 pm
              This govt. is taking customers for a ride. Reduce price and increase Excise duty. And maintain that it is being market driven. Shame on them.
              1. R
                Jan 2, 2016 at 12:20 pm
                Why this practice is not being questioned...
                1. D
                  Dr Ramesh
                  Jan 2, 2016 at 1:21 pm
                  This Govt.has already mopped up more than 50000 crs in last 16months with international price slump in oils but fooling the Indians with fiscal deficit to b mopped up with more than 3to5k crs deficits in budgets how r u going to mopped up and how long u will fool the people There r so many fronts which needs to b tackeled to mop up fiscal deficits people r not fools to know what is needed to b done than not reducing the oil prices which is a main source of inflation in this country please come out openly that u can't do anything to reduce the inflation
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