Petrol, diesel price today: Massive hike in excise duty on fuel by Modi govt; check impact on you : 06-05-2020

Petrol, Diesel Price Today:  Prime Minister Narendra Modi’s government late Tuesday evening increased excise duty on petrol by a record Rs 10 per litre, and on diesel by Rs 13 per litre. However, consumers may need not worry, as the retail prices of petrol and diesel at the pump will not rise, despite the massive tax hike. The three state-run oil marketing companies — Indian Oil Corp, BPCL and HPCL — will absorb the entire hike in the excise duty, PTI reported citing unidentified industry officials. The government will likely garner Rs 1.6 lakh crore from the hike, the report added.

The oil companies will make up for it by adjusting the hike against the recent fall in global crude oil prices. Oil companies in India have not cut petrol and diesel prices since 16 March 2020, despite global crude oil prices falling to lowest in two decades. Instead, the government has used low crude oil prices to its own advantage, by occasionally raising duties on petrol and diesel.

Source : PTI