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Govt hikes excise duty on petrol, diesel
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SME Times News Bureau | 14 Nov, 2014
Consumers of petroleum products may be deprived the full benefit of
falling global crude oil prices, as India Thursday hiked the excise duty
on petrol and diesel by Rs.1.50 per litre with immediate effect.
Even
as Revenue Secretary Shaktikanta Das said the excise duty hike will be
absorbed by oil marketing companies, it was not clear if the cut in
retail prices expected Saturday will take into account the hike in the
excise levy.
According to a notification issued by the Central
Board of Excise and Customs, the basic excise duty on unbranded petrol
will be Rs.2.70 a litre as against Rs.1.20 a litre. On branded petrol,
the duty has been raised to Rs.3.85 a litre from Rs.2.35 a litre.
Similarly,
on unbranded and branded diesel, the quantum of hike was similar,
taking the revised excise levy to Rs.2.96 per litre and Rs.5.25 per
litre, respectively.
The new rates come into effect immediately.
Apart
from a basic rate, there is special additional excise duty and
additional excise duty on both types of petrol. These stand untouched.
The
move, according to finance ministry officials, could fetch around
Rs.6,000-Rs.7,000 crore, which will be shared by the central government
and the states as per the prescribed formulae.
An official source
in the finance ministry explained the economics behind hiking the
excise duty, a major portion of which goes to the states, particularly
in the wake of a fall in the global crude oil prices to a four-year low.
Speaking
on condition of anonymity, the official said the over-recovery, or
profit, that state-run oil marketing companies have now been making on
transport fuels, had gone up to around Rs.1.70 a litre. Of this, the
government has taken a credit of Rs.1.50.
"Oil marketing companies still stand to make a profit of 20 paise per litre," he said.
As
a consequence, he added, consumers will feel no impact of Thursday's
excise hike. But with the price of both petrol and diesel having been
decontrolled, oil marketing firms are unlikely to ignore the excise hike
while revising their prices.
Continuing their plunge,
international crude oil prices went below $80 a barrel mark. The Indian
basket crude oil price on the last trading day Tuesday fell to $78.92.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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