Rahul Gandhi Slams Centre Over Excise Duty Hike On Petrol, Diesel; Demands Rollback

Rahul Gandhi criticised the BJP-led ruling government that the people are suffering economically and instead of reducing the price, the tax has been raised.

Former Congress President Rahul Gandhi. (File Photo/ Getty)

New Delhi: In reaction to the BJP-led ruling government increasing the excise duty on petrol by a record Rs 10 per litre, and on diesel by Rs 13 per litre, Congress leader Rahul Gandhi has demanded rollback of taxes on petrol and diesel on Wednesday. Although the hike in duty will not impact the consumers as the retail prices of petrol and diesel at the pump will remain unchanged. The Congress leader took to Twitter in expressing anguish over the hike, saying "The people are suffering economically due to the coronovirus, in spite of reducing the price, the tax has been raised from Rs 10 to Rs 13 which is not a good decision and it should be withdrawn." Even as the base price of petrol is merely Rs 17.96 a litre and diesel just Rs 18.49 a litre, the total tax component (Centre and Delhi state) is Rs 49.92 on petrol while Rs 48.09 on diesel. The hike makes it evident that the tax load is massive on the two auto fuels. However, the steep hike in the excise duty will not impact the consumers as the retail prices of petrol and diesel at the pump will remain unchanged. Even Congress general secretary Priyanka Gandhi cornered the Central government over its decision to hike excise duty on petrol and diesel. In a series of tweets, Priyanka said that the government was busy filling its coffers at a time when the benefit of low crude oil prices should have been transferred to the consumers. The three state-run oil marketing companies — Indian Oil Corp, BPCL and HPCL are going to absorb the entire hike in the excise duty. The government will likely garner Rs 1.6 lakh crore from the hike, the PTI report informs. Earlier, the petrol and diesel price in Delhi were increased after the state government raise VAT to 30 per cent taking the tax rate to Rs 16.44 for petrol and Rs 16.26 per litre  for diesel. Along with the central and state taxes, freight, and dealers' commission, petrol on Wednesday is priced at Rs 71.26 a litre in Delhi while diesel is selling at Rs 69.39 a litre.