News Brief | January 2016
Govt hikes excise duty on petrol, diesel
The Government today increased excise duty on petrol by Rs.0.30 per litre and by Rs.1.17 a litre on diesel to make use of slump in oil prices to garner an additional Rs.2,500 crore. Basic excise duty on unbranded petrol has been increased from Rs.7.06 per litre to Rs.7.36 and the same on unbranded diesel from Rs.4.66 to Rs.5.83 per litre. Finance Minister Arun Jaitley said the increase in duty will yield an additional Rs.2,500 crore in revenue during the remainder of the 2015-16 fiscal which ends on March 31, 2016.
After including additional and special excise duty, the total levy on unbranded petrol will be Rs.19.36 per litre as against Rs.19.06 currently. Similarly, on unbranded or normal diesel, total excise duty after including special excise duty will be Rs.11.83 per litre as compared to Rs.10.66 now. Basic excise duty on branded petrol has been raised from Rs.8.24 per litre to Rs.8.54 a litre and the same on branded diesel from Rs.7.02 to Rs.8.19 per litre.
This is the second increase in excise duty in less than six weeks. Through the previous excise duty hike, the Government had mopped up Rs.3,200 crore.