New Delhi: Petrol and diesel will soon become costlier as the Union Finance Minister Nirmala Sitharaman has proposed to increase special additional excise duty and cess on the two petroleum products.
“Crude prices have softened from their highs. This gives me a room to review excise duty and cess on petrol and diesel. I propose to increase Special Additional Excise duty and Road and Infrastructure Cess each by one rupee a litre on petrol and diesel,” Sitharaman said in her maiden Budget Speech while presenting the Union Budget 2019-20 before the Parliament on Friday.
The Finance Minister said that road and infrastructure cess on petrol and diesel is proposed to be increased to 9 rupees from 8 rupees per litre.
Currently, petrol attracts excise duty of Rs 17.98 per litre, while VAT levied on petrol amounts to Rs 14.98. The overall price charged from dealers amounts to Rs 32.96 per litre. In the case of diesel, the government charges Rs 13.83 per litre excise duty and Rs 9.47 per litre VAT. The price charged to dealers amounts to Rs 23.3 per litre.
With the increase in excise duty and cess, the people are set to feel the burden of a rise in fuel prices.
Also Read: Budget 2019 : FM Nirmala Sitharaman’s Budget Speech
Ms Kalinga