If the government raises Excise duty on Petrol-Diesel, the benefit of the prices being reduced by the oil companies will not reach the customers.
New Delhi| The government has increased excise duty on petrol-diesel by Rs 3. It has come into effect from 14 March. This decision will help the government struggling with the weakness in the economy to raise extra money. It will also help the government to take measures to prevent coronavirus outbreaks. Crude oil prices have dropped in the international market in recent days. Because of this, oil companies are already lowering petrol-diesel prices. If the government raises the prices, the benefit of the prices being reduced by the oil companies will not reach the customers.
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According to sources, the central government has imposed this additional excise duty on petrol-diesel for raising funds needed for infrastructure and other development works in the current financial situation. The government has imposed special additional excise duty of Rs 2 per litre on petrol-diesel while road, infra cess of Rs 1 per litre.
According to the information available on the website of Indian Oil Corporation Limited (IOCL), excise duty of Rs 19.98 is imposed on a litre of petrol in the capital Delhi. Now, after raising the three rupees, the rate of excise duty on petrol in the capital Delhi will be Rs 22.98 per litre. Similarly, excise on diesel in Delhi is being recovered at the rate of Rs 15.83 per litre which will now increase to Rs 18.83 per litre.
Oil prices fell by 6 rupees in two and a half months
Since January, oil prices have been reduced by more than Rs 6. After the announcement of the government, the price of petrol in Delhi today was 63.87 paise per litre and diesel price was 62.58 paise per litre. After adding excise duty, dealer commission and other taxes to the base price of oil, its price almost doubles. Oil companies change prices of petrol and diesel at 6 am daily.
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