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Budget 2019 brings Shocks : Petrol, diesel prices to rise by Rs 2 per litre as Modi Govt increase excise duty and cess
TIWN July 5, 2019
 Budget 2019 brings Shocks : Petrol, diesel prices to rise by Rs 2 per litre as Modi Govt increase excise duty and cess
PHOTO : Finance Minister Nirmala Sitaraman placing budget. LS TV Pic

NEW DELHI / AGARTALA, July 5 (TIWN): When oppositions are protesting on the increasing petrol, diesel and other fuel price hikes, Petrol and Diesel pricesare set to rise by Rs 2 per litre in the country as new Finance Minister Nirmala Sitharaman in her budget speech today increased of special additional excise duty (SAED) as well as Road and Infrastructure Cess by Rs 1 per litre each on automobile fuels.The government currently charges Rs 7 per litre of SAED on both branded and un-branded petrol and Rs 1 per litre on diesel. Also, Road and Infrastructure Cess of Rs 8 per litre is being charged on both petrol and diesel. Minister Sitharaman did not share the overall tax gain to the government as a result of the budget announcement.“Crude prices have softened from their highs, this gives me room to review excise duty and cess on petrol and diesel. I proposed to increase special additional excise duty and road and infrastructure cess each one by Rs 1 per litre on petrol and diesel,” Sitharaman said. The BJP led central today presented the Union Budget to boost infrastructure and foreign investment at a time when economy is showing signs of slowdown.

The previous Union Budget of 2018-2019 had cut basic excise duty on petrol and diesel by Rs 2 per litre, however, the move did not result in reduction in fuel prices for consumers as the cut in duty had been offset by an additional levy of Rs 8 per litre under Levy of Road and Infrastructure Cess on petrol as well as diesel.

The government has introduced Rs 8 per litre levy of Road and Infrastructure Cess on petrol and diesel but abolished the additional duty of Excise (Road cess) on motor spirit by Rs 6 per litre at the same time – a net impact of Rs 2 per litre addition on the levy of tax on petrol and diesel. Thus the net increase of tax by Rs 2 per litre on fuel was offset by the Rs 2 per liter reduction in basic excise duty.

Petrol and diesel prices remain unchanged across the country for the third consecutive day on Friday. Price of one litre of petrol today stood at Rs 70.51 while diesel costs Rs 64.33 per litre in the national capital.

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