New Delhi | Jagran News Desk: The Government on Friday announced the Union Budget and with this the fuel prices increased by at least ₹2.4 per litre across metro cities.  

On Friday, the cost of Petrol in Delhi was ₹70.51 which rose to ₹72.96 on Saturday after the announcement of the budget. While the cost of Diesel in Delhi on Saturday was ₹66.69 per litre which got hiked by ₹2.36.  

In Mumbai, the cost of Petrol was hiked by ₹2.42 and now it costs ₹78.57 per litre. Diesel price has seen an increase of ₹2.5, up at ₹69.90 per litre from the previous price of ₹67.40 per litre.

While in Kolkata, the price of petrol on Saturday was ₹75.15 per litre which increased by ₹2.4 and the cost of diesel on Saturday ₹68.59 per litre which increased by ₹2.36.

In Chennai, the petrol prices were up by ₹2.57 and the current price is ₹75.15. Previously it was ₹72.75 per litre. Diesel price in Chennai also increased by ₹2.52 at ₹70.48 per litre from the previous price of ₹67.96 per litre.

The fuel prices were expected to rise after Finance Minister Nirmala Sitharaman raised taxes on the fuels in the Union Budget on Friday.

The excise duty and road and infrastructure cess on the auto fuels were increased by ₹2 per litre each to raise over ₹28,000 crore.

India imports more than 220 million tonnes of crude oil, and the new duty will give the government ₹22 crore additionally.

"Crude prices have softened from their highs. This gives me a room to review excise duty and cess on petrol and diesel. I propose to increase Special Additional Excise duty and Road and Infrastructure Cess each by ₹2 a litre on petrol and diesel,"  said Sitharaman in her speech on Friday.

Petrol currently attracts a total excise duty of ₹17.98 per litre (₹2.98 basic excise duty, ₹7 special additional excise duty and ₹8 road and infrastructure cess).

On diesel, a total of ₹13.83 per litre excise duty is charged (₹4.83 basic excise duty, ₹1 special additional excise duty and ₹8 road and infrastructure cess).

On top of these, VAT is charged which varies from state to state. In Delhi, VAT is levied at the rate of 27 per cent on petrol and 16.75 per cent on diesel. In Mumbai, VAT on petrol is 26 per cent plus ₹7.12 a litre additional tax while diesel attracts 24 per cent sales tax.

Import of petrol and diesel attracts customs duty equivalent to the total levy of excise. But the government has, with effect from July 6, removed ₹9 a litre import duty equivalent to road and infrastructure cess.

The Modi government had, in its first term, only twice cut excise duty on petrol and diesel but raised it nine times. The last time, the duty was revised in October 2018 when excise duty was lowered by ₹1.50 a litre each on petrol and diesel. It had in October 2017 cut the same by ₹2 a litre.

The BJP-government at the centre had raised excise duty on petrol by ₹11.77 a litre and that on diesel by ₹13.47 a litre in nine instalments between November 2014 and January 2016 to shore up finances as global oil prices fell.

Hindustan Petroleum Corporation, Bharat Petroleum Corporation and Indian Oil Corporation shares were down after imposition of special additional excise duty on petrol and diesel.

IOC closed 2.84 per cent lower at ₹152.10, HPCL fell 0.71 per cent at ₹286.60 and BPCL shed 2.80 per cent to ₹369.35 on the NSE.

(with PTI inputs)

Posted By: Aalok Sensharma