Excise Duty: The ministry says that petrol which is meant for retail sale is not mixed with ethanol or methanol. The basic excise duty will be Rs 3.40 per liter with effect from November 1, 2022, instead of Rs 1.40 per liter at present.
Excise Duty : Giving relief to the industry, the central government has postponed the additional excise duty being imposed on petrol and diesel for a month. According to the information received, now the excise duty of Rs 2 per liter has been postponed for one month. Along with this, the decision to impose excise duty on non-mixed diesel has been postponed for six months. The Finance Ministry said in a notification on Friday (September 30) that additional excise duty on petrol and diesel will now be levied from November 1, 2022. Union Finance Minister Nirmala Sitharaman in her budget for the financial year starting April 2022 had brought an additional levy of Rs 2 per liter on petrol and diesel which is not blended with ethanol and bio-diesel respectively. This duty was to be implemented from 1 October 2022, but now it has been increased to 1 November.
Presently 10 per cent ethanol extracted from sugarcane or surplus food grains is blended into petrol with a view to reduce oil import dependency and provide an additional source to farmers. But there is only experimental blending of bio-diesel extracted from non-edible oilseeds into diesel, which is the most widely used fuel in the country. Explain that blending of fuel is the priority of this government. To encourage fuel blending efforts, unrelated fuels will attract an additional differential excise duty of Rs 2 per liter from the first day of October 2022.
Branded petrol not doped with ethanol
The ministry says that petrol which is meant for retail sale is not mixed with ethanol or methanol. The basic excise duty will be Rs 3.40 per liter with effect from November 1, 2022, instead of Rs 1.40 per liter at present. On the other hand, branded petrol, not doped with ethanol, will attract an excise duty of Rs 4.60 per liter as against Rs 2.60 at present. Whereas in the case of diesel, the said fuel is intended for retail sale, not mixed with alkyl esters of long chain fatty acids derived from vegetable oils, commonly known as bio-diesel. Branded diesel will attract a basic excise duty of Rs 6.20 per liter as against 4.20 at present.
Will induce additional charges to arrange logistics
Explain that in addition to the basic excise duty, special additional excise duty is levied on petrol and diesel. The total excise duty on petrol comes to Rs 19.90 per liter and on diesel Rs 15.80. While the additional duty will prompt oil companies to procure more ethanol for blending into petrol and arrange logistics for transportation to deficient areas, it is unlikely that the country will see the scale required for blending with bio-diesel. Will be able to build infrastructure for construction.
India is the world’s third largest oil importer
Last year, the government raised its target of achieving 20 per cent ethanol blending with petrol by 2025, five years ahead of its previous target, to help reduce dependence on costly oil imports. Earlier this year 10% ethanol blending was achieved. India is the world’s third largest oil importer, relying on foreign suppliers to meet more than 85 percent of its oil demand.
Source: www.tv9hindi.com”