Government has reportedly increased the cap on special additional excise duty on petrol and diesel. With this, the limit on excise duty for petrol has been increased by Rs 18 per litre, and on diesel by Rs 12 per litre.
Earlier, the cap on special additional excise duty for petrol and diesel was Rs 10 and Rs 4, respectively. Removing this limit will give the government the flexibility to raise the same in coming days. Earlier this month, Centre had increased excise duty on petrol and diesel by Rs 3 per litre each. This excise duty hike had reportedly helped the government collect over Rs 2,000 crore.
These excise duty hikes come on the back of a decline in crude oil prices amid a price war between Saudi Arabia and Russia. While earlier fall in crude prices this year had been passed on to the customer, the government is looking to cash in on the recent one to shore up funds in view of the coronavirus outbreak. The funds collected from the excise duty hike will be utilised for meeting emergency expenses during the current contagion.