Budget 2019: Petrol to become costlier by about ₹ 2.50 & diesel by ₹ 2.30 from Saturday

July 5: Now that the general election is over, the Budget for 2019 once again attempts to take advantage of the subdued oil prices projected in the Economic Survey by raising excise duty and road cess by ₹ 1 each. to garner about ₹ 20,000 crore in the remaining months of the fiscal.

During her maiden Budget speech in parliament, Sitharaman said, “I propose to increase special additional excise duty and road and infrastructure cess each one by ₹ 1 a litre on petrol and diesel.” Post considering local sales tax or value added tax (VAT), which is charged after adding central excise duty on base price, the increase in petrol price would be over ₹ 2.5 per litre and that on diesel would be ₹ 2.3.

Petrol will become costlier by about ₹ 2.50 a litre and diesel by ₹ 2.30 from Saturday as a result of higher fuel tax announced in the Budget on Friday, removing the relief the government had extended since October 4 last year after pump prices shot through the roof ahead of polls in five states.