Government Increases Excise Duty on Petrol and Diesel by Rs 1.50 per litre

Just a few hours ago, we reported that state oil companies are planning to reduce the fuel prices but now as the government has raised the excise duty on petrol and diesel by Rs 1.50 per litre, the possible reduction has now been negated. With the increase in excise duty, government pulls an additional revenue of about Rs 13,000 crore. Before the duty hike, petrol in Delhi costed Rs 64.25 a litre while the diesel was priced at Rs 53.35 per litre.

On the branded petrol, government has hiked the excise duty to Rs 3.85 per litre from Rs 2.35 per litre, while excise duty on unbranded petrol is hiked to Rs 2.70 per litre from Rs 1.20 per litre. Excise duty on branded diesel is also raised to Rs 5.25 per litre from Rs 3.75 per litre and that of unbranded diesel was hiked to Rs 2.96 per litre from Rs 1.46 per litre.

According to industry experts, Bharat Petroleum Corp Ltd. and Hindustan Petroleum Corp Ltd. are further planning to reduce the petrol and diesel price by Re 1 per liter by the end of this week, most probably on November, 15, 2014.

Recently, on October 31st, oil companies reduced petrol prices by Rs 2.41 per litre and diesel by Rs 2.25 per litre. In sixth consecutive rate revision, the oil companies have reduced petrol prices by 13 per cent or Rs 9.36 per litre while the diesel prices were deduced by 10 per cent or Rs 5.62 per litre in just two revision.

Source: PTI