New Delhi : The government has increased excise duty on petrol and diesel to take advantage of cheap crude. The central governments announced to increase duty on petrol by Rs 10 and on diesel by Rs 13 per liter. However, this will not affect the general customers. In fact, this increase will adjust prices due to record decline in crude and oil prices will remain stable despite increasing duty.
The price hike will be absorbed by Oil Marketing Companies leading to no increase in retail prices of fuel at the pump. https://t.co/lTTXEDfgfd
— ANI (@ANI) May 5, 2020
Last month itself, Brent crude prices fell below $ 20 a barrel. The impact of Brent crude is seen in India’s crude basket. Crude bill for India was drastically reduced due to the fall in crude oil prices. However, to raise the necessary funds to deal with the Corona crisis, the government had already planned to take advantage of the fall in crude oil prices. On 23 March itself, the government had approved raising the excise duty limit. The government has kept prices of petrol and diesel stable by increasing excise on decreasing crude bill. This will enable the government to raise the necessary funds without increasing the price of fuel