Petrol price hike: Centre mulls over reducing excise duty on fuel
NEW DELHI: The rapid increase in petrol and diesel prices has already made a dent on consumers’ pocket. In some cities, the cost of petrol has crossed Rd 100-mark. Now, to ease the burden, Centre is mulling over reducing excise duty on fuel.
According to market experts, the government likely to take decision on cut in import duty.
HOW MUCH IMPORT DUTIES WILL BE REDUCED?
The Indian government can reduce the import duties on petrol and diesel up to Rs 8.50 per litre. The government cannot reduce the import duties more than this as it will affect the tax revenue.
WHAT DO EXPERTS THINK?
According to the experts of the investment firm ICICI Securities, the financial year 2020-21 tax collection through petrol and diesel has been estimated at around Rs 3.2 lakh crore and according to the current excise duty, the India government would receive around Rs 4.35 lakh crore.
WHAT IS THE CURRENT EXCISE DUTY?
After the outbreak of pandemic due to coronavirus, the government increased the excise duty over petrol which is Rs 13 and on diesel up to Rs 16 per litre. After the increase in the excise duty the price of petrol increased up to Rs 32.9 and of diesel, it reached up to Rs 31.8.
HOW MUCH THE PRICE OF PETROL HAS BEEN INCREASED?
In February, petrol price got hiked for 16 days after which the price increased by Rs 04.74, in Mumbai it reached up to Rs 97.57 and in Bhopal the HP petrol was being sold for Rs 102.12. This year the price of petrol has reached an all-time high price.