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Government raises excise duty on petrol and diesel
December, 16th 2015

Government has raised excise duty on petrol and diesel taking advantage of the fall in global crude prices. The increase will net the government Rs 2,500 crore in the rest of the financial year, helping it bridge the expected deficit in the direct taxes in the current fiscal.

The duty on petrol has been raised by 30 paise a litre while that on diesel is up a steeper Rs 1.17/litre.

The price of Indian basket of crude was placed at $34.25/barrle on December 15, down sharply from over $39/barrel last fortnight.

The decline in the crude prices has allowed the government to raise duties while passing on some of the benefits to the consumer. The higher duties have raised indirect tax collecations at a time when direct taxes are likley to be below budget estimate and divinvestment also lower than targeted.

 
 
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