Excise Duty Hiked on Petro Products

The government has increased excise duty on petrol and diesel, taking advantage of a fall in global prices, to garner an additional Rs.2,500 crore in the rest of the financial year.
Basic excise duty on unbranded petrol has been increased by 30 paise to Rs.7.36 a litre and on unbranded diesel by Rs.1.17 to Rs.5.83 per litre.
The government is facing a likely shortfall in direct tax mobilisation and the additional revenue from the increase in excise duties on petro products will help make it up to an extent. Customers will end up paying more for auto fuels just a day after prices of petrol and diesel were lowered. After including additional and special excise duty, the total levy on unbranded petrol will now be Rs.19.36 per litre, while on unbranded or normal diesel, total excise duty after including special excise duty will be Rs.11.83 per litre.

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