Fork out more to fill your tank now

The Finance Minister, in her quest to raise revenue for the exchequer, has called upon the government’s favourite cash cows – petrol and diesel. The prices of these fuels will increase by more than ₹2 a litre. That’s because the Budget has increased two taxes — the Special Additional Excise duty, and also the Road and Infrastructure Cess — by ₹1 a litre each on petrol and diesel. Simply put, the Budget has increased total taxes on petrol and diesel by ₹2 each. Add to this taxes levied by the states (value added tax) and the price of these fuels at the pump will be up by more than ₹2 a litre.

This price hike will more than offset the excise duty cut of ₹1.5 a litre on these fuels that the Centre had effected in October 2018.