Budget 2019: Petrol, diesel price back to square one
NEW DELHI: Union Budget has finally brought back the excise duty on petrol and diesel back to square one. Back in October 2018, ahead of state elections, then Finance Minister Arun Jaitley had cut excise duty on fuel by Rs 1.50, and Nirmala Sitharaman in her maiden budget has proposed to increase Special Additional Excise duty and Road and Infrastructure Cess each by one rupee a litre on petrol and diesel.
In Delhi, today, petrol is being retailed for Rs 70.51 a litre, from which you are paying Rs 36.40 as taxes and dealer commission. This includes Rs 17.98 excise duty, Rs 3.54 dealer commission and Rs 14.98 VAT. Post today's budget announcement, these taxes will further go up by Rs 2.
"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 one rupee a litre on petrol and diesel," Sitharaman said in her Budget speech.
The dealer commission varies a little with the location of fuel pumps. For petrol, it is between Rs 3 and Rs 3.65 per litre. For diesel, it is between Rs 2 and Rs 2.62 per litre.
After the latest hike, the excise duty levied on normal petrol will be Rs 19.98 up from Rs 17.98, while on branded petrol, it will be Rs 21.16, up from Rs 19.16.
For regular high-speed diesel, the excise duty will be Rs 15.83, up from Rs 13.83, and for branded high-speed diesel, it will be Rs 18.19, up from Rs 16.19.
Previous excise rate actions
The central government had increased the excise duty on petrol by Rs 11.77 a litre and on diesel by 13.47 a litre between November 2014 and January 2016. Later, in October 2017, excise duty was marginally cut by Rs 2 a litre. In October 2018, there wan another Rs 1.50 cut.
VAT on petrol and diesel varies from state to state. After adding excise duty, dealer commission and VAT, the retail selling price of the petrol gets nearly doubled.
The Economic Times 06-07-18