Petrol, diesel prices to remain same after excise duty cut: Know why

Pakistan       by Muhammad Irfan | Published

The Budget has announced the abolition of the Rs. 6 per litre additional excise duty on petrol and high-speed diesel, and also reduced the basic excise duty on branded and unbranded petrol and diesel by Rs. 2 per litre each.

Road and infrastructure cess on petrol and diesel manufactured in and cleared from four specified refineries in the northeast has been levied at Rs 4 per litre.

Petrol was priced at Rs 73.10 per litre and diesel is priced at 64.11 per litre in the national capital on Friday.

Finance Minister Arun Jaitley will present the current NDA government's fifth and arguably his toughest Budget yet as he seeks to address agriculture distress, create jobs and boost growth while at the same time stick to fiscal prudence.

Earlier excise duty on unbranded petrol and diesel product was charged at Rs 6.48 per litre and Rs 8.33 per litre, whereas branded petrol and diesel products were charged with Rs 7.66 per litre and Rs 10.69 per litre respectively.




Since then prices are revised on daily basis.

Asked about the cut in excise duty and imposition of road cess in the Budget, analysts said it was the global crude oil prices which were driving petrol and diesel rates. Practically, there is no impact on the final price of petrol and diesel. Today, price of petrol went up by 15 paisa per liter and that of diesel by 19 paisa. It will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

Once brought under GST, prices of petrol and diesel are likely to stabilise and may remain within the Rs 50-mark since it will do away with the excise duty imposed by the Centre and the Value Added Tax (VAT) levied by the states.

With this reduction, the FM said the government will bear the revenue loss of Rs 13,000 crore in the remaining part of FY18. "This proves our stand that the BJP has always been in favour of capitalists", Siddaramaiah, who also holds the finance portfolio, said. Production curbs by the Organisation of the Petroleum Exporting Countries and high demand have led to the surge.

There is also an expectation that common man may get some relief in income tax by way of a raise in the exemption limit.

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