The government will charge a special additional excise duty of Rs 2 per litre on petrol and diesel, Finance Minister Nirmala Sitharaman said while presenting her maiden budget in Lok Sabha today.

Of the Rs 2 hike, the road infra cess of Re 1 will go to the road ministry for infrastructure while the special duty of Re 1 will go to the revenue department.

On Friday, petrol prices in Mumbai stood at Rs 76.15 a litre, while diesel was at Rs 67.40 per litre.

According to the Indian Oil Corporation data, petrol costs Rs 70.51 per litre and diesel Rs 64.33 a litre in New Delhi. In Kolkata and Chennai, the petrol price stood at Rs 72.75 per litre and Rs 73.19 per litre while diesel was at Rs 66.23 per litre and Rs 67.96 a litre, respectively.

In September last year, opposition parties had called for a Bharat Bandh to protest against the steep rise in fuel prices in the country. They had also demanded an immediate reduction in central excise duty and excessive VAT in various states.

However, in October that year, the government reduced excise duty on petrol and diesel by Rs 1.50 per litre, stating that the oil marketing companies would absorb the impact to the tune of Re 1 a litre.

First Published:Jul 5, 2019 2:09 PM IST