The common man can get relief from petrol-diesel prices very soon. Excise duty on petrol and diesel can be reduced very soon. After this the prices will go up all over the country. In fact, M. Ajit Kumar, Chairman, Central Board of Indirect Taxes and Customs (CBIC), said that the government is constantly considering reducing the excise duty on petrol and diesel (Petrol Diesel Price). This will be decided in due course.
Indirect tax collection from record excise duty on petrol and diesel increased by 59 percent year-on-year in the financial year 2020-21 ending March 31. In a video call with reporters regarding the information on tax figures, he said, “We hope that Revenue will be good in the coming months. As far as reduction in fuel prices is concerned, the government is keeping a close eye on this matter and I am confident that a decision will be taken whenever the time comes.
Explain that due to high excise duty on fuel, petrol prices have reached Rs. 100 per liter in many cities of India. So far, the government has increased excise duty 13 times. The last time excise duty on petrol and diesel was increased was in May 2020. Explain that excise duty is levied by the Central Government. The central government is currently levying an excise duty of Rs 32.90 per liter on petrol and Rs 31.38 per liter on diesel.
The base price of petrol is now around Rs 33 and the base price of diesel is close to Rs 34. The central government is levying excise duty of Rs. 33 on this. After this, the state governments levy VAT and cess on it at their own discretion, after which their price has increased up to 3 times from the base price.