Excise duty hike on petrol, diesel to yield Rs 20,250 cr

The government will raise additional revenue of Rs 20,250 crore (Rs 202.50 billion) through hike in excise duty on petrol and diesel announced since November in 2014-15 financial year, Parliament was informed on Tuesday.

"The estimated revenue gain on account of the aforesaid four increases in the Basic Excise duty (BED) rates of petrol and diesel (branded as well unbranded) is about Rs 20,250 crore in the current financial year," Minister of State for Finance Jayant Sinha said in a written reply to the Rajya Sabha.

Budget 2015: Complete Coverage

The government had raised excise duty on petrol and diesel on November 12, December 2, January 2 and January 17 to help it achieve the fiscal deficit target for this year.

The minister further said that as a result of the aforesaid increase the present effective BED rate on unbranded and branded petrol is Rs 8.95 per litre and Rs 10.10 per litre respectively.

The present effective BED on unbranded and branded diesel is Rs 7.96 per litre and 14 per cent+ Rs 5 per litre or Rs 10.25 per litre, whichever is lower respectively.

The central excise revenue (provisional) from petrol and diesel during the period from January 31, 2014, to January 31, 2015, is about Rs 58,000 crore (Rs 580 billion), Sinha said.