As it is petrol in India has hit its highest price of the year following eight days of continuous surge after the Saudi Aramco's oil facilities were attacked last week. The prices may rise further from here as government is mulling a hike in excise duty on petrol and diesel for increasing its revenue stream.
In accordance with a leading business channel report, the discussion on the matter is at an exploratory stage and only pre-mature discussion was held between the different stakeholders including oil ministry, finance minister and PMO. Through sources it has been learnt that there could a levy of Rs. 1-2 per litre excise duty on both petrol and diesel.
If the excise duty hike on fuel is brought about soon, the government's kitty will expand by as much as Rs. 15,000 crores. Nonetheless, there remains a mixed view on the matter as one side opines that the time is just right for the hike as state elections are still far-off while the other does not favours it ahead of festivities as any hike would affect consumerism negatively.