New Delhi: Petrol price was hiked Saturday by a minimum of `2.40 per litre and diesel by `2.36 after Finance Minister Nirmala Sitharaman raised taxes on the fuels to part-fund her Budget for 2019-20.
Petrol price in Delhi was increased by `2.45 per litre to `72.96 while the increase in Mumbai was `2.42 to `78.57, according to a price notification issued by state-owned Indian Oil Corp (IOC). In Kolkata, petrol price went up by `2.40 to `75.15 and in Chennai by `2.57 to `75.76 a litre.
Diesel price was hiked by `2.36 per litre in Delhi to `66.69 and by `2.50 per litre in Mumbai to `69.60.
Rates vary from state to state depending upon the incidence of local sales tax or VAT. Also prices vary by a few paise at pumps operated by other state-owned fuel retailers, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL).
Sitharaman Friday raised excise duty and road and infrastructure cess on petrol and diesel by `2 per litre each to raise `24,000-28,000 crore on an annual basis. Post considering local sales tax or value-added tax (VAT), which is charged after adding central excise duty on base price, the increase in pump rates was higher.
“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,” she said in her budget speech.
Before the tax increase, petrol attracted total excise duty of `17.98 per litre (`2.98 basic excise duty, `7 special additional excise duty and `8 road and infrastructure cess). Now, this tax has gone up to `19.98 a litre.
