Coronavirus impact: A hike in fuel rates
The government will be raising additional excise duty on petrol and diesel by Rs 8 per litre. The finance ministry has come up with a proposal of making some amendments in the finance bill 2020 with a hike of excise duty on fuel prices and this will help the government battle the Coronavirus spread.
The amendment was passed without debate and the additional revenue generated can be used to meet unexpected expense during Coronavirus outbreak.
As of 14th March, special duty on petrol was increased to Rs 10 per litre and Rs 4 per litre for diesel. The road and infrastructure cess on petrol and diesel have been increased to Rs 10 per litre and thus the central duty has increased to Rs 3 per litre for petrol and diesel.
At present, the total central excise duty on petrol is Rs 22.96 per litre and Rs 18.83 per litre for diesel, with a hike of Rs 8 per litre the new excise duty on petrol will be Rs 30.98 and Rs 26.83 for diesel and that is without the VAT imposed by states.