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Gasoline price: government raises excise duty on gasoline for record Rs 10, diesel for Rs 13 | India Business News


NEW DELHI: On Tuesday night, the government raised excise duties by a record 10 rupees per liter of gasoline and 13 rupees per liter of diesel to earn additional revenue of 1.6 lakh crore rupees as it repeated its formula proven not to transfer profits derived from a fall in international oil prices.

Retail gasoline and diesel prices will not be affected by the tax changes, as state oil companies will adjust them against the recent drop in oil prices, industry officials said.

According to a notice issued by the Central Board of Indirect Taxes and Customs, Rs 2 per liter has increased the special excise tax on gasoline and Rs 8 per liter.

In the case of diesel, special excise taxes have been increased by Rs 5 per liter and the road increase by Rs 8 per liter.

With this, the total incidence of the special tax on gasoline has increased to Rs 32.98 per liter and that of diesel to Rs 31.83.

The gasoline tax was Rs 9.48 per liter when the Modi government took office in 2014 and the diesel tax was Rs 3.56 per liter.

This is the second time since March that the government has increased the excise tax to eliminate gains from falling international oil prices. He had raised excise duties on gasoline and diesel by Rs 3 per liter each in March to get around Rs 39,000 crore.

Gasoline and diesel prices have not been revised since March 16 even though international oil prices fell to a two-decade low. Profits will now be adjusted against the excise tax increase.

Gasoline costs Rs 71.26 per liter in Delhi and a liter of diesel costs Rs 69.39.

Between November 2014 and January 2016, the government increased excise duties on gasoline and diesel fuel nine times to eliminate gains from falling global oil prices.

In total, the gasoline tax increased by Rs 11.77 per liter and on diesel by 13.47 per liter in those 15 months that helped the consumption tax more than double to Rs 2.42 billion rupees in 2016- 17 from Rs 99,000 crore in 2014-15.

He cut excise duties by 2 rupees in October 2017 and by 1.50 rupees a year later. But he increased the excise tax by Rs 2 per liter in July 2019.

Government sources said the Center has taken this step of increasing the duty to raise some revenue in light of a tight fiscal situation. This would help generate the resources to cover the costs of fighting the coronavirus.

Times of India