Tuesday, February 14, 2012

Union Budget 2012-2013:Excise on branded diesel begins to hit

The petroleum ministry has asked the finance ministry to scale down the excise duty on branded diesel in the forthcoming budget due to the sharp drop in the sale of the fuel. The petroleum ministry has pointed out that while the excise duty on ordinary diesel was reduced by Rs 2.60 per litre on June 25 last year, the duty on branded diesel such as Indian Oil's Xtramile and Bharat Petroleum's Speed was left untouched. While earlier, the duty on branded diesel was only Rs 1.15 per litre higher than that on ordinary diesel, the difference has now gone up to Rs 3.75 a litre. As a result, while before June 25, the price difference between ordinary diesel and superior branded ones was only around Rs 2 a litre, the difference has now gone up to Rs 5 a litre.
Source: Business Today

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