The central government on Monday announced an increase of Rs 2 per liter in excise duty on petrol and diesel. However, within half an hour, the government gave an explanation that this increase will not have a direct impact on the general public, that is, there will be no change in the retail prices of petrol and diesel.
Adjust will be done due to reduced international price
The government said that crude oil prices in the international market have recently declined, which has given relief to the oil companies. Taking advantage of this, the government has decided to increase excise duty, so that revenue can improve, but the retail prices of oil will remain the same.
Now how much excise duty will be taken?
After the increase, the total excise duty on petrol and diesel will be as follows:
This increase is believed to be a part of the central government’s efforts to raise revenue, especially at a time when there is a challenge to reduce the financial deficit and keep public expenses balanced.
Relief on public at present
It is clear from this announcement of the government that retail consumers will not have to bear any additional burden immediately. However, experts believe that if crude oil prices in the international market rise again, there may be pressure on domestic prices in future.
Opposition opposed
Opposition parties have started surrounding the government on this decision. He says that even though prices do not increase right now, the burden of increase in duty eventually falls on the public. The Congress and other opposition leaders have described this decision against the public stuck in economic crisis.
What do economists say?
Financial matters believe that this step of the government was necessary for fiscal balance, but it has been implemented in a sensitive manner, so that inflation does not increase and does not directly affect the public. Experts also say that if the government maintains this extra duty for a long time, consumer prices may be affected.
