Excise duty on petrol Diesel hiked
Excise duty on petrol Diesel hiked; but the consumer need not worry as it is not passed to him
The government on Thursday hiked excise duty on petrol and diesel. While unbranded petrol excise duty has been hiked to Rs. 2.70/litre from Rs. 1.20/litre, the duty on unbranded diesel has been raised to Rs. 2.96/litre from Rs. 1.46/litre.
However, the excise duty hike is unlikely to affect fuel prices for consumers. Oil companies are likely to cut petrol and diesel prices this Saturday due to sliding global prices. But the quantum of the price cut may be lower due to the excise duty hike. Those expecting further relief in prices, may be in for disappointment, as the excise duty hike may offset the likely reduction in prices.There is a possibility that cut may be put off altogether, as well.
“For the moment, we are not passing on the increase in excise duty. It is being absorbed by companies and will be adjusted against review in rates which was due on Saturday,” IOC Chairman B Ashok said.
Revision in rates will be considered at the next fortnight (end of November), he said. “As and when we look at price revision, whenever it is due, we will look at the situation and decide on revising rates then.”