Union Budget 2019: A day after Union Finance Minister Nirmala Sitharaman increased excise duty and cess of fuel, petrol prices have jumped up to Rs 2.5 per litre across all metro cities of India. While petrol is priced at Rs 72.96 in Delhi, up from Rs 70.51 on Friday, diesel prices have reached Rs 66.69, up from Rs 64.33 yesterday. Here's the new fuel price buildup for the other three metro cities of India.
- Mumbai: Petrol Rs 78.57, up from Rs 76.15 on Friday; Diesel Rs 69.9, up from Rs 67.4 on Friday.
- Chennai: Petrol Rs 75.46 (rs 73.19 yesterday); Diesel Rs 70.48 (Rs 67.96 yesterday).
- Kolkata: Petrol Rs 75.15 (Rs 72.75 yesterday); Diesel Rs 68.59 (Rs 66.23).
During the first Budget speech of the Modi government on Friday, Nirmala Sitharaman raised excise duty and road and infrastructure cess on the auto fuels by Rs 2 per litre to raise over Rs 28,000 crore. Post considering local sales tax or Value Added Tax (VAT), which is charged after adding central excise duty on base price, the increase in petrol price comes around Rs 2.5 per litre and Rs 2.3 on diesel. The Finance Minister levied Re 1 per tonne customs or import duty on crude oil, which will also help the government raise additional funds.
"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 Rs two a litre on petrol and diesel," Sitharaman said in her Budget 2019 speech.
Right now, petrol attracts excise duty of Rs 19.98 per litre, while VAT levied on petrol amounts to Rs 15.51. The overall price charged from dealers amounts to Rs 33.91 per litre. In the case of diesel, the government charges Rs 15.83 per litre excise duty and Rs 9.82 per litre VAT. The price charged to dealers amounts to Rs 38.54 per litre.
It has been a common practice in the past to cut duties when global crude prices increased. However, since 2014, the government has been found increasing excise duty even as global prices fell, leading to an increase in the central government's revenue. According to the Ministry of Finance's revenue collection estimates, the Centre collected over Rs 2.579-lakh crore by levying taxes on the petroleum products in FY19. This is a massive jump from the gross revenue collection of around Rs 88,600 crore in 2013/14. In FY18, the collection was Rs 2.016-lakh crore.
Edited by Manoj Sharma