The Central Government’s Ministry of Revenue has announced a revision in the excise duty rate of petrol and diesel from April 8, 2024. In a notification, the ministry called for the excise duty on petrol and diesel to be hiked by Rs 2 per litre. However, the government has said this will not affect the retail prices.
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In a separate tweet, the Ministry of Petroleum and Natural Gas has come forward to clarify that public sector oil marketing companies will not be hiking retail prices once the revised duty comes into effect. The announcement suggests that the excise rate hike will be absorbed by a reduction in fuel prices before excise is chargeable.
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Excise is generally charged on the landed price of the fuel at petrol stations which includes the base cost and freight expenses. Do note that this landing price also attracts VAT at rates decided by the states and union territories of the country.
India, for a while now, has been following daily revisions in fuel prices based on the fluctuating market prices of crude oil, though rates have remained stable for a long while now. The last notable revision was a Rs 2 per litre reduction in prices near the general elections.
