Excise Hike on Petrol and Diesel, Consumers Unaffected

  • Hot
  • Published On: 6 May 2020
  • Views
  • Likes
  • 2 min read
  • Download

Excise increases on fuel prices but retail prices will not be raised.

Excise Hike on Petrol and Diesel
  • Excise Hike on Petrol and Diesel

In a new development, the Central Government has hiked the excise duty on petrol and diesel. The BJP led NDA government on Tuesday evening hiked excise duty on petrol by a record Rs 10 per litre and Rs 13 on Diesel. The government wants to add more revenues and the excise duty hike will add an estimated Rs 1.6 Lakh to its coffers. The hike comes into play due to the decrease in demand as the lockdown remains enforced across the country. The excise duty hike won’t impact the Indian consumer as there won’t be any increase in the retail prices. 

This is the second hike in the excise duty in the last 2 months by Narendra Modi helmed Central government. Several states including Delhi and Haryana have hiked Value Added Tax (VAT) in the recent days to shore up their falling revenues due to lack of economic activity. A government notification tells us that the special excise duty on petrol was hiked by Rs 2 a litre to Rs 12 a litre and by Rs 5 a litre to Rs 9 a litre for diesel. Road cess on both petrol and diesel has seen a record hike by Rs 8 a litre to Rs 18 a litre.

Earlier, on 14th March 2020, the Central Government increased the excise duty, road and infrastructure cess by Rs 3 a litre each for both petrol and diesel. 

The government had amended the Finance Act, it in March increased the cap on special additional excise duty by Rs 8 a litre on both petrol and diesel. The cap was increased to Rs 18 a litre on petrol and Rs 12 a litre on diesel. The government has the necessary flexibility to raise duties on petrol and diesel by another Rs 8 per litre each. 

If we look at the maths behind the calculation, every rupee hike in excise duty is expected to generate Rs 13,000-14,000 crore annually. The latest hike is likely to result in a revenue gain of around Rs 2.85 lakh crore this fiscal. The money will be used to fund the different infrastructure and development projects. 

Read Also: Coronavirus Impact: Petrol and Diesel Prices increased in Delhi 

Author: Abhinav Smith

Giving emotions to the machines, Abhinav Smith loves to write on automobiles which is his undying passion. Currently working as an auto correspondent at Droom Discovery, he is an ardent fan of machines and Manchester United in equal measure. He pursued Engineering as a degree but took up writing as a career like many of his peers. Abhinav has 5 years plus of experience in the writing field. more

Search Your Dream Vehicle

Select Category

  • Bikes
  • Scooters

Recent News

Benelli 502C India Launch on July 29, 2021
Published On : 28 July 2021 | 1 min read

Benelli 502C will be offered in two color choices namely Matte Cognac Red and Glossy Black

Click here to Read More
COVID-19 India: Daimler Starts Free Vaccination for Truck Drivers
Published On : 28 July 2021 | 1 min read

The company inoculated over 60 drivers on the first day at its Oragadam Plant

Click here to Read More
Diesel Home Deliveries Start in Delhi
Published On : 28 July 2021 | 1 min read

BPCL joins hands with Humsafar India to deliver diesel to your doorstep through its 20-litres jerry cans.

Click here to Read More
Pure EV Extends the Warranty Policy for its Electric Vehicles
Published On : 28 July 2021 | 1 min read

The new extended warranty policy covers key power-train components (Battery, Motor, Controller) for all the products

Click here to Read More
Toyota India Announces 8 Years Warranty on Hybrid Vehicles
Published On : 28 July 2021 | 1 min read

This new warranty will be applicable on the brand’s Self-charging Hybrid Electric Vehicles (SHEVs) which includes Camry and Vellfire

Click here to Read More
Ford Aspire to Come with a 6-speed Automatic Gearbox
Published On : 28 July 2021 | 1 min read

The new Ford Aspire AT variant is expected to be launched in the coming months in India

Click here to Read More