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LATEST NEWS UPDATES | Government keeps options open for more fuel price hikes -TCA Sharad Raghavan

Government keeps options open for more fuel price hikes -TCA Sharad Raghavan

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published Published on Jul 7, 2019   modified Modified on Jul 7, 2019
-The Hindu

Finance Bill provides for rise of Rs.5/litre

While the Budget has effected a hike in the duties and cess on petrol and diesel amounting to Rs.2 per litre, the government has given itself the leeway for a further increase of levies by Rs.5 per litre, Revenue Secretary Ajay Bhushan Pandey said.

While Finance Minister Nirmala Sitharaman had announced a Rs.1/litre increase in the Special Additional Duty (SAD) on petrol and diesel and a Rs.1/litre increase in the Road and Infrastructure Cess on the fuels in Friday’s Budget speech, the Finance Bill, which converts the Budget announcements into law, specified a higher increase in both the SAD and the Road and Infrastructure Cess, Mr. Pandey indicated to The Hindu.

According to the Budget announcement, the SAD would increase to Rs.8 per litre for petrol and Rs.2 per litre for diesel. The cess would increase to Rs.9 per litre for both fuels.

However, Clause 185 of the Finance Bill, which converts the Budget announcements into law, specified a higher increase in both the SAD and the Road and Infrastructure Cess. Clause 185 of the Bill… seeks to increase the rate of special additional duty of excise on motor spirit, commonly known as petrol, from Rs.7 per litre to ?10 per litre [and] increase the rate of special additional duty of excise on high speed diesel oil from Rs.1 per litre to Rs.4 per litre.

Similarly, Clause 201 of the Finance Bill seeks to “increase the rate of road and infrastructure cess on motor spirit commonly known as petrol and high speed diesel oil, from Rs.8 per litre to Rs.10 per litre”.

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The Hindu, 7 July, 2019, https://www.thehindu.com/news/national/government-keeps-options-open-for-more-fuel-price-hikes/article28307810.ece?homepage=true


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