No rollback of excise hike on fuels: MoS Finance

The government Tuesday denied it had any plans to withdraw the recent hike in excise duty on petrol and diesel.

Minister of State for Finance Jayant Sinha told the Lok Sabha during Question Hour that while the increase in the duty had been effected, inter alia, "taking into consideration the continued fall in international prices of crude", the "present circumstances" did not warrant a change.

To make up for fall in taxes due to the sustained decline in international crude oil prices, the government hiked excise duty by Rs.1.50 a litre on both the fuels first on Nov 12. Later, on Dec 2, the duty on petrol was hiked by Rs.2.25 per litre and on diesel by Re.1 a litre.

This is expected to fetch the government an additional Rs.10,500 crore in the current fiscal.

The money would fund welfare schemes, Petroleum Minister Dharmendra Pradhan had said.

Consumers have been spared the impact of the excise hike, most of which goes to the states, because the government has thereby claimed a portion of the increased profits of oil marketers consequent to global crude oil prices falling to a five-year low.

The international crude oil price of the Indian Basket on the last trading day Monday was $60.10 per barrel.