Outlook Business Desk
After a gap of two years, the Narendra Modi government has raised excise duty on petrol and diesel by Rs 2 per litre starting from April 8. This brings the total duty on petrol to Rs 13 and diesel to Rs 10 per litre.
Petrol pump fuel prices will not change. Oil firms have been directed to bear the additional cost rather than transferring it to consumers.
As global crude prices drop, the govt hiked excise duty by Rs 2 to raise revenue without impacting consumers. Oil firms will bear the cost, so pump prices stay the same and consumers' bills remain unaffected.
Union Minister Hardeep singh said ,"Let me clarify upfront and on the record — this will not be passed on to the consumer. If crude stabilises in the vicinity of $60-$65, OMCs will have the headroom to look at price."
In the past, similar excise duty hikes have often led to price rises. But now this time, the government is trying to avoid that by balancing it with falling international prices.
Congress leaders, including Mallikarjun Kharge and Rahul Gandhi slammed the government's excise duty hike on fuel, saying that it adds burden of inflation on struggling citizens.
Fuel prices will stay stable for now as the additional cost is being covered. However, if global oil prices rise or losses increase, retail rates might go up in the future, as per analysts.