On November 7, 2015, the Indian Government has once again hiked the price of petrol as well as diesel. This time, however, excise duty price has been raised. Excise duty on petrol is increased by Rs. 1.6 per litre while diesel prices increase by four paise per litre.
Petrol and diesel receive several taxes and excise duties before it reaches in our vehicles. Currently, a total tax and excise duty on petrol accounts for Rs. 19.06 per litre. Diesel, on the other hand, attracts slightly fewer taxes and excise duties of Rs. 17.46 per litre.
Previously, the basic excise duty on normal petrol was Rs 5.46 per litre, now it witnesses a hike up to Rs. 7.06 per litre. Normal diesel earlier attracted excise duty of Rs. 10.26 per litre, now it is nominally increased to Rs. 10.66 per litre.
This is the fifth time Indian Government has hiked the excise duty price of petrol and diesel during the period of January-November 2015. The four previous hikes in excise duty provided additional revenue to the Government by Rs. 20,000 crores.
On a whole the Indian Government has hiked excise duty between January-November 2015. All the hikes account for Rs. 7.75 per litre and Rs. 6.50 per litre for petrol and diesel respectively. These hikes have helped the Government reduce its fiscal deficit.