Petrol, diesel prices hiked in Delhi: Details here

The notification said the amendment was made as the "Central Government being satisfied that it is necessary in the public interest so to do". While petrol prices in Delhi undercut those in the above cities, it is apparent that the capital's commuters will be paying a significant premium for diesel.

Before the introduction of Goods and Services Tax (GST), the state had control over bringing in more revenue by tweaking tax rates that fall under the jurisdiction of the state government.

It again raised excise duty on March 14 by Rs 3 per litre. "In coming days, nearly all state governments are expected to raise taxes on auto fuels and liquor", said a tax expert who did not want to be named.

The government late Tuesday hiked road and infrastructure cess by ₹8 for petrol and diesel and special additional excise duty (SAED) by ₹2 per litre and ₹5 per litre, respectively.

State-owned fuel retailing companies, Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had frozen petrol and diesel prices since March 16, as if anticipating the government move and will now set off gains they accrued from continuing drop in global oil prices against the excise duty hike.

The COVID-19 lockdown has also affected the auto manufacturers across India. "The easing of lockdown conditions announcements made over the weekend have been viewed as a lease of life".

The hike in duties on fuel will be effective from May 6. In the nine months of 2019-20, states have already earned 1,44,952 crore from taxes on petroleum products.

With this, the total incidence of excise duty on petrol has risen to Rs 32.98 per litre and that on diesel to Rs 31.83.

According to reports, this change in Value-Added Tax structure has been made by the state government in anticipation of a decrease in selling price of fuel by the Centre in the coming days. Similarly, with 70 per cent corona cess on liquor, its prices have also reached the highest level in Delhi. The government of the Union Territory said that the revenues are down by a huge margin for the month of April 2020.

Price hike should help boost government's depleted revenue stream during lockdown. Only the headline has been changed.

This story has been published from a wire agency feed without modifications to the text.

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