In order to fund the ambitious infrastructure development programme of the Government, particularly the building of 15000 kms of roads, during current and next financial year, the Government has decided to increase basic excise duty on petrol and diesel (both branded and unbranded) by ₹ 2 per litre. Allocation of these resources to the road sector will also spur economic activity and employment generation arising from the road construction sector.

These increased rates of basic excise duty will be effective from 2ndJanuary, 2015 (that is from midnight of 1st and 2nd January, 2015). There will be no change in other excise duty rates applicable to these commodities.

Excise duty increase on petrol and diesel to fund infrastructure, directing additional revenue to road projects effective early January. The Government increased the Basic Excise Duty on petrol and diesel (branded and unbranded) by a per litre increment to fund an infrastructure programme directed at road construction; the additional revenue is allocated to the road sector to spur construction activity and employment. The revised duty is effective from the night of 1st-2nd January, 2015, and no other excise duty rates on these fuels have been changed.