The central government has increased the excise duty on petrol and diesel. The government announced this on Tuesday night.
According to the announcement, an additional excise duty of Rs 8 per liter was levied and a special surcharge of Rs 2 per liter was levied. In this way, the excise duty on fuel was Rs. 10 per liter. Similarly, additional excise duty of Rs 8 per liter was imposed on diesel and special excise duty of Rs 5 per liter on diesel. In this way the excise duty on diesel is increased by Rs 3 per liter. The change began on Wednesday morning.
But the consolation for petrol and diesel consumers is that oil marketing companies will tolerate this increase and not increase the retail price of petrol and diesel. The stock market is pressuring oil marketing companies to trade today. At 11.55 am on the National Stock Exchange, HPCL (HPCL) was down 5.85%, BBCL (2.5%) and Indian Oil (IOC) down 2.48%.
It is not surprising to see the government's increase fuel and diesel prices to suit crude oil prices. The federal government introduced such rules in the 2019-20 general budget, which imposed a special excise duty of Re 1 per liter in July and road cess on one rupee per liter of petrol and diesel.
Subsequently, the central government increased excise duty on petrol and diesel by Rs 3 per liter in March 2020, following a steep fall in international crude oil prices. The imposition of special excise duty on petroleum products will help the government to increase the total revenue collection, which will help the government to control the fiscal deficit and adjust the capital for expenditure.
