Will the Public Be Affected by the Rs 2 Excise Duty Hike on Petrol and Diesel?
Central Government Increases Excise Duty by Rs 2 on Petrol and Diesel
The Central Government has announced an increase of Rs 2 per litre in the excise duty on both petrol and diesel. However, there will be no change in the retail prices of these fuels, meaning the general public will not face any immediate financial impact.
Decline in Crude Oil Prices
In a notification issued by the government, the hike in excise duty was formally communicated. While this move may appear burdensome, it is important to consider the current global scenario. Crude oil prices in international markets have recently declined, with the price per barrel currently around $63.34.
This drop has allowed petroleum companies to purchase crude oil at reduced rates. Despite these savings, retail fuel prices in India have not been lowered. Observing the significant profit margins enjoyed by these companies, the government has decided to raise excise duty to ensure increased revenue collection.
Will the Common Man Be Affected?
Although excise duty has been increased, the Central Government has clarified that there will be no direct impact on consumers. The revised duty will come into effect on Tuesday, April 8, and will primarily affect petroleum companies.
The government has further confirmed via a post on social media platform X that fuel retailers have decided not to alter pump prices. As a result, end consumers will not experience any change in the cost of petrol or diesel.
