Centre spikes excise duty on petrol and diesel on Wednesday by ₹10 and ₹13 per litre as the government looked to mop up gains arising from fall in international oil prices.
The price rise will be absorbed by Oil Companies and there will be no increase in prices at the pump. As per the officials, the revenue generated from these duties will be used for infrastructure and other developmental items.
According to a notification by the Government, additional excise duty on petrol raised by ₹2 and road cess by ₹8. In case of diesel, additional excise duty raised by ₹5 per litre and road cess by ₹8 a litre.
With this, the total price of excise duty on petrol has risen to ₹32.98 and on diesel to ₹31.83.
In March, the government had similarly increased the duty on the two auto fuels by ₹3 each as fears of a global recession depressed oil prices. The tax on petrol was ₹9.48 per litre when the Modi government took office in 2014 and that on diesel was ₹3.56 a litre.
centre spikes excise duty.