In a recent decision, the central government of India has increased the excise duty on petrol and diesel by ₹2 per litre. This move is expected to affect fuel prices across the country and could lead to higher transportation costs and overall inflation.
What is Excise Duty?
Excise duty is a type of tax imposed on goods produced within the country. In this case, it is added to the price of petrol and diesel before they reach the consumer. When excise duty increases, the price of fuel usually becomes more expensive for the public.
Reason Behind the Hike
According to officials, the government has taken this step to increase revenue. With rising expenditures on infrastructure, welfare schemes, and global uncertainties affecting the economy, the additional money collected through fuel tax can help fund national development projects.
Impact on Common People
The rise in excise duty may directly affect the cost of transportation, as petrol and diesel are widely used in vehicles, buses, and trucks. This could lead to:
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Higher prices of essential goods due to transportation cost increase.
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More pressure on household budgets, especially for middle- and lower-income families.
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A possible rise in inflation in the coming months.
Reactions
Many political leaders and citizens have expressed concerns over the timing of this hike. Some believe that with rising global fuel prices, this decision may further burden the common people. On the other hand, government officials maintain that the increase is necessary for long-term economic stability.
Conclusion
The increase in excise duty on petrol and diesel by ₹2 per litre is a significant move by the central government. While it aims to boost government revenue, it is important to monitor its impact on the economy and the day-to-day lives of citizens.
