Global crude oil prices are at a four-year low but India has raised excise duty. Experts say there’s a method to the madness: extra funds can cushion the impact when prices rise
When fuel consumers across the country were in a celebratory mood with petrol and diesel prices coming down by Rs.10 and Rs.6, respectively, since Narendra Modi assumed office in May, the Union Finance Ministry decided to play spoilsport. On November 12, the Government raised excise duty by Rs.1.50 per litre on both petrol and diesel. On December 2, the duty on petrol was raised byRs.2.25 per litre and on diesel by Re 1 a litre.