Budget 2019: Petrol, Diesel prices to rise by Rs 2 per litre as centre plans to increase excise duty and cess

  • Finance Minister Nirmala Sitharaman, announces the Union Budget for 2019-20 in Parliament on Friday.

New Delhi, July 5: Petrol and diesel will be costlier by Rs. 2 a litre because of additional duty and cess, Finance Minister Nirmala Sitharaman announced in her Budget 2019 speech on Friday(July 5) . An additional excise duty and cess of Re 1 each will be added to the cost per litre.

“Crude prices have softened from their highs. This gives me 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 1 rupee a litre on petrol and diesel,” said the Finance Minister.

She said, The government would ensure that the hike doesn’t impact the people. “We are going to compensate. It will not impact the common public,” she said, adding the money would be used for infrastructure purposes.

Right now, petrol attracts excise duty of Rs 17.98 per litre, while VAT levied on petrol amounts to Rs 14.98. The overall price charged from dealers amounts to Rs 32.96 per litre. In the case of diesel, the government charges Rs 13.83 per litre excise duty and Rs 9.47 per litre VAT. The price charged to dealers amounts to Rs 23.3 per litre.