🚨 Fuel Frenzy: Modi Govt's Excise Duty Hike Amidst Global Oil Price Dip! 🚗💨
- MediaFx
- 5 days ago
- 2 min read
TL;DR: The Modi government has hiked excise duties on petrol and diesel by ₹2 per litre, even as global crude prices are falling. This move aims to boost government revenues and offset recent tax cuts. While consumers won't feel the pinch at the pump, LPG cylinder prices are set to rise by ₹50. Opposition parties are up in arms, accusing the government of burdening the common man.
What's the Buzz?
In a move that's got everyone talking, the central government has increased the excise duty on petrol and diesel by ₹2 per litre. This decision comes at a time when international crude oil prices are on a downward trend. The government claims this step is essential to bolster revenues, especially after the tax reliefs provided in the Union Budget 2025.
No Worries at the Pump!
Before you panic about shelling out more for fuel, here's the scoop: the hike in excise duty won't affect the retail prices of petrol and diesel. The Oil Ministry assures that consumers will not bear the brunt of this increase. So, your fuel expenses remain unchanged.
LPG Prices on the Rise!
However, it's not all sunshine and rainbows. Starting tomorrow, LPG cylinder prices will see a hike of ₹50. This means a 14.2 kg refill will now cost ₹553 for Ujjwala customers and ₹853 for others in Delhi. This increase is aimed at narrowing the gap between retail and international LPG prices.
Opposition's Outcry!
The opposition isn't holding back. Congress President Mallikarjun Kharge slammed the government, highlighting that international crude oil prices have fallen by 41% since May 2014. Yet, instead of passing on the benefits to the public, the government has chosen to hike excise duties. Rahul Gandhi also took a dig, suggesting that the Prime Minister has given a "befitting reply to 'tariffs'" by increasing fuel taxes.
A Look Back!
This isn't the first time the government has adjusted excise duties in response to global oil price fluctuations. Between November 2014 and January 2016, excise duties were raised multiple times when crude prices fell, leading to increased government revenue. Conversely, there have been instances where duties were cut to ease inflationary pressures.
MediaFx Opinion!
From a working-class perspective, this move raises concerns. While the government aims to boost revenues, the simultaneous increase in LPG prices directly impacts household budgets, especially for the economically disadvantaged. In times of global economic shifts, it's imperative that policies prioritize the well-being of the common people over fiscal metrics.
What Do You Think?
Is the government's decision justified, or does it unfairly burden the common man? Drop your thoughts in the comments below!
