Fuel prices up

With Finance Minister Pranab Mukherjee on Friday announcing restoration of basic duty on petrol, diesel and crude petroleum and a rise of Re 1 in Central Excise duty, the fuel prices are in for a rise. The likely hike in prices of petrol is Rs 2.67 while for diesel it is Rs 2.58. The new prices will come into force on Friday midnight (12 a.m on Saturday).

In his Budget (2010-11) speech, Mukherjee said the Government had exempted fuel from basic customs duty to give relief to the oil marketing companies. The global oil prices rose alarmingly to $112 per barrel last year.

But, with global prices comparatively low right now, the government has decided to improve the fiscal position by restoring basic duty and increasing excise duty.

"In view of the pressing need to move back to a fiscal consolidation path, I propose to restore the basic duty of 5 per cent on crude; 7.5 per cent on diesel and petrol and 10 per cent on other refined products. I also propose to enhance the Central Excise duty on petrol and diesel by Re 1 per litre each," said Mukherjee.

This drew loud protests from the Opposition parties who walked out of the Lok Sabha.