Facing a revenue crunch due to the lockdown over coronavirus, the Central government on Tuesday increased the excise duty and imposed additional road cess on petrol and diesel prices.
But this will not impact consumers and the retail price will remain unchanged, the government said.
Road cess on petrol hiked by Rs 8 and excise duty by Rs 2, taking the total hike to Rs 10. Whereas the road cess on diesel has been increased by Rs 8 and excise duty by Rs 5, taking the total hike to Rs 13.
The new tax rates will be effective from May 6, 2020.
A Gazette notification issued by the government amended Notification No. 05/2019-Central Excise, dated July 6, 2019.
The notification said the amendment was made as the "Central Government being satisfied that it is necessary in the public interest so to do."
In a press note, the government said it has increased excise duties by Rs 10 per litre on petrol and Rs 13 per litre on diesel. The hike includes Rs 8/ltre road and infra cess on both petrol and diesel while the rest is "special additional excise duty", it said.
"The revenue generated from these duties shall be used for infrastructure and other developmental item of expenditure," it added.
The retail sale prices of petrol and diesel will, however, not change on account of this increase in duties due to the decline in global oil prices.
