Excise duty on diesel, petrol hiked by `3/L

Excise duty on petrol and diesel was on Saturday hiked by `3 per litre as the government looked to mop up gains arising from fall in international oil prices.

Special excise duty on petrol was hiked by `2 to `8 per litre incase of petrol and to `4 incase of diesel, an official notification said. Additionally, road cess on petrol was raised by `1 per litre each on petrol and diesel to `10. The increase in excise duty would in normal course result in a hike in petrol and diesel prices but most of it would be adjusted against the fall in rates that would have necessitated because of slump in international oil prices.

Meanwhile, as the government announced the hike on Saturday, the Congress protested and demanded that the benefit of reduced international crude oil prices should be passed on to the people. Congress spokesperson Ajay Maken said the government should reduce the rates of petrol, diesel and LPG by at least 35-40 per cent. He said the Congress will strongly raise the issue both inside and outside Parliament. Mr Maken said that the the excise duty on fuel has been hiked more than a dozen times since the BJP government came to power. ■

Mr Maken said the total incidence of excise duty on petrol has risen to Rs 22.98 per litre and that on diesel to Rs 18.83 per litre. The tax on petrol was `9.48 per litre when the Modi government took office in 2014 and that on diesel was Rs 3.56 a litre, Mr. Maken said.

“The government has looted the people by increasing excise duties and huge taxes on petroleum products and did not bring this under GST despite the consistent demand of Congress,” he said. He further added, “The ill-directed antipeople policies of the BJP government are responsible for the high prices of petrol, diesel and LPG despite crude oil consistently remaining down to less than 50 per cent for the last six years.” The Congress also demanded that the hike in excise duty/customs duty affected by the Modi government since May 2014 on petroleum products should be withdrawn immediately until it is brought under the GST regime.