Govt ups petroldiesel excise duty again oil firms to bear burden

first_imgThe move, which comes amid declining prices of crude oil in the international market, will boost government revenue and help it contain the fiscal deficit. The revised excise duty on petrol and diesel came into affect from Tuesday, official sources said.The move will have no impact on retail prices of petrol and diesel, they said.This is the second hike in excise duty in three weeks. On 12 November the government had raised the excise duty by Rs 1.50 per litre on both petrol and diesel but that did not have any impact on the retail prices. In view of the declining prices of crude, oil marketing companies had on Monday cut petrol price by 91 paise a litre, the seventh reduction since August, and diesel by 84 paise per litre, the third straight cut. Also Read – I-T issues 17-point checklist to trace unaccounted DeMO cashWhile the fall in global rates and the resultant cuts in retail prices have led to lower realisation on account of customs and VAT, particularly in case of state governments, there wasn’t any loss to the central government on account of reduction in petrol and diesel prices as excise duty on the two fuels is fixed and not ad valorem.Unbranded petrol at present attracts a basic excise duty of Rs 2.70 per litre, a special additional excise duty of Rs 6 a litre and a road cess of Rs 2 per litre. Unbranded diesel attracts a basic excise duty of Rs 2.96 a litre and road cess of Rs 2 per litre. The total excise duty on unbranded petrol will rise from Rs 10.70 to Rs 12.95 per litre and that on unbranded diesel from Rs 4.96 per litre to Rs 5.96. Brent rates, the benchmark grade for more than half of the world’s oil, have dropped to $68.34 a barrel, the lowest level since October 2009. Prices declined 18 per cent last month and are 38 per cent lower in 2014. Also Read – Lanka launches ambitious tourism programme to woo Indian touristsState-owned fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL), following the fortnightly review practice revised rates on Sunday. Petrol price was cut by 91 paisa a litre and diesel by 84 paisa. The seventh reduction in price since August has meant that petrol costs Rs 63.33 a litre in Delhi, Rs 10.27 per litre less than what it cost in July.The third reduction in diesel rates in one month has led to the price coming down to Rs 52.51 a litre. Oil firms revise rates of petrol, which was deregulated in June 2010, and diesel on 1st and 16th of every month based on average international oil price and rupee-US dollar exchange rate.last_img read more

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