Excise duty on petrol was hiked by ~Rs12/ltr and on diesel by ~Rs13.8/ltr since PM Narendra Modi government came into power in 2014. These streak of multiple hikes on excise duty was to some extent relaxed in October 2016 when the government reduced excise duty on petrol and diesel by Rs2/ltr.
Since that change, the excise duty has been kept unchanged even though petrol and diesel prices went skyrocketing thereon. Every rupee cut in excise duty on petrol and diesel might result in a revenue loss of ~Rs13,000cr for the government.
Neither the center nor the states did not reduce excise duties as it contributes to a significant portion of much-needed revenues for both entities.
Kerala state government was sole exception deciding on Wednesday to cut petrol and diesel prices by Rs1 from June 1 at the cost of losing annual revenue of Rs509cr.
Since that change, the excise duty has been kept unchanged even though petrol and diesel prices went skyrocketing thereon. Every rupee cut in excise duty on petrol and diesel might result in a revenue loss of ~Rs13,000cr for the government.
Neither the center nor the states did not reduce excise duties as it contributes to a significant portion of much-needed revenues for both entities.
Kerala state government was sole exception deciding on Wednesday to cut petrol and diesel prices by Rs1 from June 1 at the cost of losing annual revenue of Rs509cr.
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