Govt increases petrol by 2.98, diesel rate up by Rs5.92
02 February, 2018, 10:20 | Author: Kathy Ellis
Petrol price in Mumbai was Rs 80.10 per litre, while diesel was priced at Rs 67.10.
The move comes at a time petrol in Calcutta is being sold at Rs 75.74 per litre and diesel at Rs 66.78 per litre.
Value-Added Tax on petrol in Delhi is Rs 15.39 per litre while on diesel it is Rs 9.32.
"2 Rs excise on petrol and diesel is being reduced and this is being converted into cess, that is the only change we have made, practically there is no impact on the final price of petrol and diesel". At present, the government levies excise duties of Rs 21.48 per litre on petrol and Rs 17.33 per litre on diesel.
The October 2017 excise duty cut cost the government Rs 26,000 crore in annual revenue and about Rs 13,000 crore during the remaining part of the current fiscal year that ends on March 31, 2018.
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Prior to that, the government had in four installments hiked the excise duty on petrol and diesel between November 2014 and January 2015 to buffer the gains from fall in global crude prices.
Though the government cut additional excise duty on the fuels by Rs 6 per litre in the Union Budget for 2018=19, Finance Minister Arun Jaitley on Thirsday slapped a new Rs 8 per litre "Levy of Road and Infrastructure Cess" on both petrol and diesel, thereby keeping the total incidence at the same level. "This proves our stand that the BJP has always been in favour of capitalists", Siddaramaiah, who also holds the finance portfolio, said.
The new prices of the petroleum products will be effective from midnight today. The government, however, may choose to levy an additional cess on diesel and petrol.
"We are already on the cusp, in terms of oil prices".
Every $1-per-barrel-rise in crude oil prices inflates India's import bill by $1.33 billion, which can potentially put a downward pressure on the domestic currency.
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