The benefit of the decreasing price of Crude Oil will not be benefited to the general consumers as much as was expected. The government has increased the excise duty on Petrol-Diesel by Rs 3 per liter. In the case of petrol, the special excise duty has been increased by Rs 2 to Rs 8. At the same time, special excise duty of diesel has been increased by Rs 4 per liter. This information has been given in the official notification.
In addition, road cess on petrol and diesel each has been increased by Rs 1 per liter to Rs 10.
However, the effect of increase in excise duty will be adjusted by decreasing crude oil prices in the international market.
After this increase, the excise duty on petrol has increased from Rs 19.98 per liter to Rs 22.98 per liter. Also, the excise duty on diesel has increased from Rs 15.83 to Rs 18.53. This is in addition to the Value Added Tax (VAT) imposed by the state governments.
The tremendous fall in global crude oil prices has opened up an unprecedented means for the central government to raise revenue.