Excise duty hike on petrol, diesel likely

The Centre may be looking to raise excise duty on petrol and diesel by up to Rs 5 per litre to partly fund its rising Covid-related expenses but the burden may not immediately be passed on to consumers.

If that happens, the total incidence of excise duty on petrol will rise to Rs 37.98 per litre and on diesel, it will go up to Rs 36.98 per litre. Excise on petrol was Rs 9.48 per litre and on diesel it was Rs 3. 56 a litre in 2014 when the Narendra Modi government took office. India still pays less than Rs 30 per litre for a litre of crude oil.

The Centre has since 2014 hiked duty on petrol and diesel 10 times.