New Delhi: A day after Union Finance Minister Nirmala Sitharaman, in her Union Budget 2019 speech announced a hike in cess on auto fuel prices, petrol prices shot up by Rs 2.45/litre and diesel prices gone up by Rs 2.36/litre. Following the price hike, petrol in Delhi on Saturday be available at Rs 72.96 per litre while diesel will be available for Rs 66.69 per litre.
On Friday, a litre of petrol cost Rs 70.51 in Delhi and Rs 76.15 in Mumbai. Diesel was priced at Rs 64.33 a litre in Delhi and Rs 67.40 per litre in Mumbai.
Yesterday, Finance Minister Sitharaman raised excise duty and road and infrastructure cess on the auto fuels by Rs 2 per litre each to raise over Rs 28,000 crore.Besides, the finance minister levied Re 1 per tonne customs or import duty on crude oil.
India imports more than 220 million tonnes of crude oil; and the new duty will give the government Rs 22 crore additionally.At present, the government does not levy any customs duty on crude oil. Only a Rs 50 per tonne national calamity contingent duty (NCCD) is charged.
“Crude prices have softened from their highs. This gives me a room to review excise duty and cess on petrol and diesel. I propose to increase Special Additional Excise duty and Road and Infrastructure Cess each by Rs two a litre on petrol and diesel,” Sitharaman said in her Budget speech.
Petrol currently attracts a total excise duty of Rs 17.98 per litre (Rs 2.98 basic excise duty, Rs 7 special additional excise duty and Rs 8 road and infrastructure cess).
(With agency inputs)