Petrol prices shot up by Rs 2.50/litre and diesel prices by Rs 2.30/litre within hours of the Union Budget announcing a hike in cess on auto fuel prices.
Presenting the Union Budget on Friday, Union Finance Minister Nirmala Sitharaman had raised excise duty and road and infrastructure cess on auto fuels by Rs 2 per litre each to raise over Rs 28,000 crore.
NDTV reported that on Friday, a litre of petrol cost Rs 70.51 in Delhi and Rs 76.15 in Mumbai while diesel cost Rs 64.33 a litre in Delhi and Rs 67.40 per litre in Mumbai.
Also, the finance minister levied Re 1 per tonne customs or import duty on crude oil.
India imports over 220 million tonnes of crude oil; and the new duty will give the government Rs 22 crore additionally.
At present, the government does not levy any customs duty on crude oil. Only a Rs 50 per tonne national calamity contingent duty (NCCD) is charged.
“Crude prices have softened from their highs. This gives me a room 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 Rs two a litre on petrol and diesel,” Sitharaman said in her Budget speech.
Petrol currently attracts a total excise duty of Rs 17.98 per litre (Rs 2.98 basic excise duty, Rs 7 special additional excise duty and Rs 8 road and infrastructure cess).