Road cess, excise duty hiked on petrol, diesel but no impact on retail prices
The Centre on Tuesday night hiked the road cess and excise duty on petrol and diesel but assured that there will be no impact on the retail prices. The government increased the excise duties by Rs 10 per litre on petrol and Rs 13 per litre on diesel.
The road and infra cess on petrol have been increased by Rs 8 per litre and special additional excise duty Rs 2 per litre. The road and infra cess on diesel have been increased by Rs 8 per litre and special additional excise duty Rs 5 per litre.
However, the government has assured that the retail prices of both petrol and diesel will not change on account of this increase in duties. It further clarified that the hike will have no impact on the consumer.
It added that the revenue generated from these duties will be used for infrastructure and other development items of expenditure.
The hike in duty has taken away gains from falling global crude oil prices. In April, benchmark Brent crude oil dropped to as low as USD 18.10 per barrel – the lowest since 1999, as coronavirus wiped away demand, creating large surpluses around the globe. Prices have since rebounded to around USD 28 a barrel.
(With agency inputs)