Excise Duty On Petrol Up By Rs 10/Litre, Diesel By Rs 13/Litre: 10 Things To Know

Delhi Petrol, Diesel Price: The consumer now has to shell out Rs 71.26 and Rs 69.39 for every litre of petrol and diesel respectively in Delhi.

Excise Duty On Petrol Up By Rs 10/Litre, Diesel By Rs 13/Litre: 10 Things To Know

Delhi Petrol, Diesel Rate: The excise duty on petrol is at Rs 32.98/litre and diesel at Rs 32.83/litre

The excise duty applicable to petrol and diesel has been hiked with effect from Wednesday. The increase in excise duty - which is an indirect tax levied on the production of goods - on petrol was to the tune of Rs 10 per litre, and Rs 13 per litre on diesel. In a statement late on Tuesday, the government said that prices that consumers pay at fuel stations will not be affected. The raise in excise duty on petrol and diesel comes at a time when a crash in fuel demand globally on account of the coronavirus (COVID-19) pandemic pulled crude oil prices to more than 20-year lows last month.

Here are 10 things to know:

  1. After the latest hike, the excise duty on petrol increased to Rs 32.98 per litre, from the existing Rs 22.98 per litre. In case of diesel, the duty was raised to Rs 32.83 per litre from Rs 18.83 per litre. (Also Read: How To Check Current Petrol, Diesel Price)

  2. According to the Central Board of Indirect Taxes and Customs, the special additional excise duty on petrol has been hiked by Rs 2 per litre and road cess by Rs 8 per litre. In case of diesel, the increase is to the tune of Rs 5 per litre in the special additional excise duty, and Rs 8 per litre in road cess.

  3. Domestic petrol and diesel prices are currently deregulated in the country, and move in tandem with global oil rates. However, in the international market, oil prices have dropped substantially amid the slump in global crude oil demand.

  4. "Oil prices have fallen by 53.1 per cent since from the start of the calendar year till date and now with the dampened demand prospects of the commodity, oil prices are posed to remain at the $25-30/bbl level for the time being," credit ratings agency CARE said in a note.

  5. Fuel prices vary from state to state in the country based on factors such as local taxes and dealer commission. State-run oil marketing companies - Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation - own about 90 per cent of the country's retail fuel outlets. 

  6. The consumer now has to shell out Rs 71.26 and Rs 69.39 for every litre of petrol and diesel respectively in Delhi. 

  7. The market price of petrol in Delhi on Wednesday included excise duty of Rs 32.98 per litre and VAT (including the taxes on dealer commission) of Rs 16.44 per litre. 

  8. In case of diesel, the rate included excise duty of Rs 31.83 and VAT of Rs 16.26 on sale of every litre of the fuel in the national capital.

  9. The country is currently in the third phase of a nationwide lockdown with few relaxations to curb the spread of the deadly COVID-19 disease. 

  10. India reported more than 3,900 new infections of the novel coronavirus on Tuesday marking its highest single day increase in cases, and taking its tally to 46,711. The death toll in the country stood at 1,583 people, the health ministry said.

Petrol Rate Build-Up In Delhi On May 6

ComponentRate In Rupees Per Litre
Base price17.96
Freight etc.+ 0.32
Price charged to dealers (excluding excise duty and VAT)18.28
Excise duty+ 32.98
Dealer commission (average)+ 3.56
VAT (including VAT on dealer commission)+ 16.44
Retail selling price (rounded)71.26
(Source: iocl.com)

Diesel Rate Build-Up 

ComponentRate In Rupees Per Litre
Base price18.49
Freight etc.+ 0.29
Price charged to dealers (excluding excise duty and VAT)18.78
Excise duty+ 31.83
Dealer commission (average)+ 2.52
VAT (including VAT on dealer commission)+ 16.26
Retail selling price (rounded)69.39
(Source: iocl.com)