Excise Duty

Petrol and diesel prices in India remained stable on June 12. Despite a recent increase in global crude oil prices, the fuel costs have remained unchanged for over three weeks. On June 12, petrol was priced at Rs 96.72 per litre in Delhi, while diesel was priced at Rs 89.62. In several cities, petrol is presently available for less than Rs 100.

Veterans of Karnataka's Alcohol Beverages Industry, in a press release, urged the government to revise the excise duties on liquor. The press release further claimed that the current excise duty rates make the cheap segments "cheaper" and premium segments more "expensive". "By imposing additional excise duty on spirits and beer, Karnataka government is putting additional burden on consumers," said Bishan Kumar, Editor-in-chief of Spiritz… read-more

The central government refuses to cut the excise duty cut on fuel products for fiscal concerns and a ₹10 cut may lead to a fiscal deficit of 0.58%, while it reduces inflation by just 0.2%. However, on July 20, the Centre explained that the petrol and diesel excise duty are being used for developmental infrastructure. Reportedly, additional expenditure for FY22 is expected during revised estimates.