Categories: Business

Government to gain Rs 1.6 lakh crore from excise duty on fuel

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Excise Duty Hike on petrol diesel

new Delhi. With the record increase in excise duty on petrol and diesel, the government may get an additional income of Rs 1.6 lakh crore in the current financial year. This is expected to help the government make up for the revenue loss resulting from the lockdown due to the Corona virus crisis. Late on Tuesday, the government increased excise duty on petrol by Rs 10 and on diesel by Rs 13. However, despite this hike, petrol prices remained unchanged at Rs 71.26 per liter and diesel Rs 69.39 per liter.

Public sector Indian Oil, Bharat Petroleum, Hindustan Petroleum have kept prices of petrol and diesel stable since 16 March. Companies have not put the burden of duty on customers due to the fall in oil prices. Brent crude oil prices had fallen to $ 18 per barrel, the lowest level since 1999. Due to this, the burden of crude bill has reduced significantly.

ICICI Securities said that this increase in excise duty will reduce the margin of petroleum marketing companies doing retail business of fuel by 64 percent. On May 5, it was Rs 19 per liter, but despite the increase in tariff, the ratio of gross margin decreased to Rs 6.9 per liter on May 6. Vikas Halan, senior vice-president (corporate funding), rating agency Moody's Investors Service, said that if the fee hike is maintained throughout the year, raising taxes by $ 21 a barrel on petrol and $ 27 a barrel on diesel. The government will get additional revenue of $ 21 billion.

This post was published on May 7, 2020 1:59 am

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