• News
  • Money

No change in petrol, diesel prices despite excise duty cut

No change in petrol, diesel prices despite excise duty cut

Consumers and tax analysts alike were expecting an excise duty cut in the Budget to offset the rising oil prices.

The Centre on Thursday announced that the excise duty cut of Rs 2 announced by Finance Minister Arun Jaitley will have no impact on petrol and diesel prices. "This is jumlanomics. The announcement to cut excise duty on petrol was fraudulent as the government has silently hiked the cess on fuel", said CPM chief Sitaram Yechury. The government had in November 2015 and January 2016 raised excise duty on petrol and diesel five times to take away gains arising from plummeting worldwide oil prices. "This proves our stand that the BJP has always been in favour of capitalists", Siddaramaiah, who also holds the finance portfolio, said.

OGRA has proposed Rs10.25 per litre, SKO Rs12.74 per litre and LDO Rs11.72 per litre on the basis of hike in prices of petroleum products in the worldwide market.

Opposition was quick to target the Finance Minister, accusing him of deceiving the public by his announcement of excise duty cuts. This decision of the government will not provide any relief in the prices of petrol and diesel. Diesel is widely used in transport and agriculture sector, and therefore, increase in its price would increase the input cost of farmers.

The latest uptick in crude price follows comments from Saudi Arabia that major oil producers were in agreement that they should continue cooperating on production after their deal on supply cuts expires at the end of 2018. Declining drilling activity for new oil production in the United States has further supported crude prices.

If the central kitty shrinks because of the reclassification of tax structure of petrol and diesel - two most trusted sources of generating revenue without leakage - states like Bengal will be forced to ramp up own tax revenue or borrow more from the market, increasing indebtedness. The new prices of diesel and kerosene will be Rs95.83 and Rs70.26 respectively. The government, however, may choose to levy an additional cess on diesel and petrol.

Leave Your Comment

Leave Your Comment

Latest News

Breaking News


FOX Paying Big Money For Rights to Thursday Night Football Package

Will they get better games or get rid of those ugly color rush uniforms? To subscribe to this podcast, please go here . The current deal between NBC, Fox, CBS and the NFL for Sunday football costs each station roughly $2 billion per year.

Spartans rally again for win against Penn State

Bridges, in his second game back after missing seven contests with an ankle injury, managed just four points on 2 of 8 shooting. This is easily the Nittany Lions' toughest test of the season, but a Penn State win is not as unrealistic as some may think.

Canadian government moves to make national anthem gender neutral

Mesut Ozil Agree Record Deal, Contract Signed

The Gooners have never usually been excited for January windows as the London outfit hardly seem to do any significant business at this point of the year.

Zlatan Ibrahimovic: LA Galaxy star sends transfer message to Manchester United striker

Premier League sides 'will soon spend total of £2bn a season' - Deloitte

Top surfwear CEO goes missing off coast of France

His disappearance has caused great anguish in the surfing world. "Please keep Pierre and his family in your prayers". Shortly after, four vessels and four helicopters were sent out in search of Agnes.

San Francisco District Attorney to throw out thousands of marijuana cases

Even in California, there is significant variation in how counties are handling misdemeanor pot convictions. Certain felony cases will be reviewed and may be reclassified as a misdemeanor under certain circumstances.

Diane Lane, Greg Kinnear Join 'House of Cards' as Production Resumes

In 2013, House of Cards became the first original online series to receive major nominations from the Primetime Emmy Awards. House of Cards is the most prominent example, however, and many will be watching to see how (and if) it recovers.

BSF pushing back refugees at border, Rohingya tell Supreme Court

Under this global customary law, no refugee can be forced to go back to the country where they are subjected to persecution. At this, the court said that the word "welcome" may be an exaggeration but there is a policy decision to that effect.