Petrol and diesel prices up surged by ₹2.50/litre and ₹2.30/litre respectively, after the announcement of a hike in cess on Auto Fuel prices during the Budget session.
To raise over ₹ 28,000 crore, Finance Minister Nirmala Sitharaman boosted road and infrastructure cess and excise duty on the auto fuels by ₹ 2 per litre each.
Petrol was priced at ₹ 76.15 per litre in Mumbai and ₹ 70.51 a litre in Delhi on Friday, while a litre of Diesel costs ₹ 67.40 in Mumbai and ₹ 64.33 in Delhi.
Moreover, Re 1 per tonne import or customs duty on crude oil was levied by the finance minister.
Over 220 million tonnes of crude oil is imported by India and this new duty will provide ₹ 22 crore additionally to the government.
Currently, only a ₹ 50/tonne NCCD (national calamity contingent duty) is charged and does not levy any import duty on crude oil.
“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 ₹ two a litre on petrol and diesel,” Sitharaman said in her Union Budget speech.
At present, petrol draws a total excise duty of ₹ 17.98 per litre (basic excise duty (₹ 2.98), special additional excise duty (₹ 7) and road and infrastructure cess (₹ 8).