Tax on Fuel set to increase; Check changes in rate of Petrol & Diesel

Due to continuous tax increase by the central and state governments, the planners are not getting the benefit of cheap crude, but they have to spend more for petrol and diesel.

Yogita S.

Yogita S.By Yogita S.

Published on 26 Oct 2020 11:59 AM GMT

Petrol, diesel Rates (PC: Social Media)
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New Delhi: Petrol-diesel prices are going to rise once again. Once again, the pocket of the common man is going to be relaxed. Once again, the central government is preparing to increase the excise duty on petrol and diesel. The government may increase this excise duty not from one or two rupees but from 3 to 6 rupees per liter. Earlier, at the time of lock down, the government had announced an increase in excise duty of Rs 10 per liter on petrol and Rs 13 on diesel in May.

Petrol Diesel rate to increase:

Explain that the total tax on petrol was Rs 9.48 per liter in May 2014 and Rs 3.56 per liter on diesel. Since then the tax on petrol has increased to 32.98 per liter and the tax on diesel to Rs 31.83 per liter. Due to continuous tax increase by the central and state governments, the planners are not getting the benefit of cheap crude, but they have to spend more for petrol and diesel.

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Increase in Tax:

According to a report, the government is preparing a third relief package to deal with the damage to the economy caused by Corona. In such a situation, the government needs more funds. Therefore, the government wants to compensate it for tax (excise duty). Sources said that the excise duty may increase by Rs 3-6 per liter.

But the government wants that after tax increases, petrol-diesel should not be expensive. That is why work is going on on the new plan. It is believed that the price of petrol and diesel should have been cheaper after the fall in crude oil prices. Now that will not happen.

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In the international market, crude oil has come down from $ 45 per barrel to $ 40 per barrel. That is why the government wants to take advantage of it. Now, the question is arising in your mind that how much does the government benefit from the increase of 1 rupee excise duty? Every rupee increase in the excise duty of petrol and diesel increases the central government exchequer by Rs 13,000-14,000 crore annually.

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Yogita S.

Yogita S.

Media Graduate, News Editor and PR Enthusiast.

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