Petrol price was Saturday hiked by a minimum Rs 2.40 per litre and diesel by Rs 2.36 after Finance Minister Nirmala Sitharaman raised taxes on the fuels to part-fund her Budget for 2019-20.
Rates vary from state to state depending upon the incidenceof local sales tax or VAT. Also prices vary by a few paise at pumps operated byother state-owned fuel retailers, Bharat Petroleum Corp Ltd (BPCL) andHindustan Petroleum Corp Ltd (HPCL).
Sitharaman had on Friday raised excise duty and road andinfrastructure cess on petrol and diesel by Rs 2 per litre each to raise Rs24,000-28,000 crore on an annual basis.
Post considering local sales tax or value-added tax (VAT),which is charged after adding central excise duty on base price, the increasein pump rates was higher.
“Crude prices have softened from their highs. Thisgives me a room to review excise duty and cess on petrol and diesel. I proposeto increase Special Additional Excise duty and Road and Infrastructure Cesseach by Rs two a litre on petrol and diesel,” she said in her budgetspeech.
Before the tax increase, petrol attracted total excise dutyof Rs 17.98 per litre (Rs 2.98 basic excise duty, Rs 7 special additionalexcise duty and Rs 8 road and infrastructure cess). Now, this tax has gone upto Rs 19.98 a litre.
On diesel, a total of Rs 13.83 per litre excise duty wascharged (Rs 4.83 basic excise duty, Rs 1 special additional excise duty and Rs8 road and infrastructure cess). Now, Rs 15.83 per litre is charged as exciseduty.On top of these, VAT is charged which variesfrom state to state.