As a result of the increase in excise duty, VAT or sales tax on petrol and diesel has also gone up, leading to a further increase in price.
As a result of the increase in excise duty, VAT or sales tax on petrol and diesel has also gone up, leading to a further increase in price.

Petrol, diesel prices increase by over 2 after Budget announcement. Check today's rates in top cities

  • Petrol price went up by about 2.5 per litre while diesel is up by around 2.3 per litre in different cities of India today
  • Finance Minister Nirmala Sitharaman had increased excise duty and cess on both petrol and diesel in her Budget

NEW DELHI : A day after Finance Minister Nirmala Sitharaman announced the imposition of an additional special excise duty of Re 1 per litre and road and infrastructure cess of Re 1 per litre on both petrol and diesel in the Union Budget 2019, prices of the two automobile fuels went up by over 2 all over India.

In New Delhi, petrol price shot up by 2.45 per litre and diesel went up by 2.36 a litre today. Petrol is now retailing at 72.96 per litre and diesel at 66.69 per litre in New Delhi.

In Mumbai, petrol is priced at 78.57, diesel at 69.90 per litre. In Bengaluru (Bangalore), petrol costs 75.37 and diesel 68.88. In Chennai, petrol costs 75.76 and diesel 70.48. In Kolkata, petrol costs 75.15 and diesel 68.59.

In Gurgaon or Gurugram, petrol is priced at 72.79, diesel 65.81. In Noida, petrol is priced at 72.27 and diesel 65.72.

An increase in excise duty leads to a subsequent increase in VAT or sales tax as the latter is calculated after taking into account the former. This explains why the price of petrol went up by around 2.5 while the excise duty and cess, together, was increased only by 2.

Nirmala Sitharaman, who presented the first budget of the new Modi 2.0 government yesterday, had said crude prices have softened from their highs, paving way for her 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 one rupee a litre on petrol and diesel," she had said.

Later on, Sitharaman had rejected suggestions that an increase in the prices of petrol and diesel will fuel inflation, saying it was aimed at meeting public funding needs without hurting individual taxpayers and was also a step to move away from fossil fuels to electric vehicles.

Till yesterday, an additional special excise duty of 7 per litre was charged on petrol and Re 1 on diesel besides a road and infrastructure cess of 8 per litre on both the fuel.

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