Petrol, Diesel Prices Hiked A Day After Budget Announcements: 10 Things To Know

Ms Sitharaman had on Friday raised the excise duty, and road and infrastructure cess on petrol and diesel by Rs 2 per litre each to raise Rs 24,000-28,000 crore on an annual basis.
Before the tax increase, the domestic price of petrol attracted a total excise duty of Rs 17.98 per litre (Rs 2.98 basic excise duty, Rs 7 special additional excise duty and Rs 8 road and infrastructure cess).
Now, this tax has gone up to Rs 19.98 a litre.
On diesel, a total of Rs 13.83 per litre excise duty was charged (Rs 4.83 basic excise duty, Rs 1 special additional excise duty and Rs 8 road and infrastructure cess) before the tax increase.
Now, an excise duty of Rs 15.83 per litre is charged on diesel.
On top of excise duty, Value Added Tax (VAT) is also charged on both the fuels.
Fuel rates vary from state to state based on the incidence of VAT. Also, the prices vary by a few paise at pumps operated by other state-owned fuel retailers Bharat Petroleum Corporation and Hindustan Petroleum Corporation.
In Delhi, a VAT of 27 per cent is applicable on petrol, and 16.75 per cent on diesel.
In Mumbai, it is 26 per cent plus an additional tax of Rs 7.12 a litre, while diesel attracts a sales tax of 24 per cent.
The government had raised excise duty Rs 11.77 a litre on petrol and Rs 13.47 a litre on diesel in nine installments between November 2014 and January 2016.

(With inputs from Press Trust of India)

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