Budget 2019: Petrol, Diesel Get Costlier By Rs 2 As FM Sitharaman Hikes Excise Duty

Apart from this, customs duty on gold was also increased to 12.5 per cent from existing 10 per cent.

Representational Picture (AFP)

Budget 2019: Petrol and diesel prices are set to become dearer by Rs 2 per litre as Finance Minister Nirmala Sitharaman in her maiden Budget speech proposed additional excise duty and infrastructure cess each. "Crude prices have softened from their highs. This gives me a room to review excise duty and cess on petrol and diesel,” Sitharaman said in her budget speech on Friday. "I propose to increase special additional excise duty and road and infrastructure cess each one by 1 rupee a litre on petrol and diesel," she said. Sitharaman said the softening of crude oil prices from their recent highs has provided room to review the cess and excise duty on petrol and diesel. Apart from this, customs duty on gold was also increased to 12.5 per cent from existing 10 per cent. Petrol and diesel remained unchanged for the third consecutive day on Friday and were sold for Rs 64.33 and Rs 70.51 a litre respectively in Delhi. In Mumbai, petrol and diesel were priced at Rs 67.40 a litre and Rs 76.15 a litre on Friday. In the previous Union Budget of 2018-2019, Modi government had reduced basic excise duty on petrol and diesel by Rs 2 per litre. The move, however, did not result in reduction in fuel prices for consumers as the cut in duty had been offset by an additional levy of Rs 8 per litre under Levy of Road and Infrastructure Cess on petrol as well as diesel. In her maiden Budget speech Sitharaman also said that the government will soon unveil a package for power sector and go ahead with structural reforms to achieve the objective of 'One Nation One Grid'. "Our government launched Ujwal DISCOM Assurance Yojana (UDAY) in 2015 aimed at financial and operational turnaround of DISCOMs. The government is examining the performance of the scheme and it will be further improved," the minister said. In November last, the panel had recommended the government that the Ministry of Power and Ministry of Petroleum and Natural Gas may jointly devise a scheme in line with the earlier e-bid RLNG Scheme (supported by Power System Development Fund) to revive gas-based power plants. The government has taken necessary action on all recommendations of the panel except regarding revival of gas based power plants.