Post budget, Oil marketing companies (OMCs) that got little after the pricing policy announcements which will be now flummoxed by the move to change the excise duty structure on branded auto fuels at a time when their sales have fallen steeply over the last year.
The total excise duty on branded petrol will be now up by 20 paise/litre at Rs 14.50 while it remains unchanged in the case of diesel as it continues to remain at Rs 4.75/litre. The basic duty on branded petrol was earlier 6 per cent plus Rs 5/litre which is now a flat Rs 6.50/litre while, for diesel, it has changed from 6 per cent plus Rs 1.25/litre to just Rs 2.75/litre.
The revision in the rates of branded petrol is not going to help the cause as the oil companies are apprehensive that its component of total sales could now come down to 15 per cent.