AGENCIES, New Delhi: The government, late on Tuesday, has increased the excise duty on petrol by a record ₹ 10 per litre and ₹ 13 per litre on diesel. However, the government has said in that local pump and consumers would not be affected.
This is the second increase in excise duty on fuel prices within two months by the central government and comes after a hike in value-added tax (VAT) by several states over the last few days. In March 2020, the government announced a Rs 3 per litre hike in excise duties on both diesel and petrol. The notification said that the special excise duty on petrol was hiked by Rs 2 per litre to Rs 10 per litre and to Rs 4 per litre for diesel. Road cess on both petrol and diesel was increased by Re 1 per litre to Rs 10 per litre.
Now, this excise duty hike on fuel has made India the country with the highest taxes on fuel.
A Business Today report said this is the steepest hike in excise duties on fuel in the country. The report added that the decision came on the same day when the Delhi government had hiked value-added tax (VAT) on the two fuels.
Italy has the second spot with 64 per cent taxes on retail fuel price. France and Germary claim the third spot with 63 per cent and Britain charges excise duty at 62 per cent.