The central government has no plans to impose any new cess on petroleum products, said minister of state for finance Anurag Thakur in the Rajya Sabha on Tuesday. At present, petrol and diesel in the country attract road and infrastructure cess, special additional excise duty and agriculture infrastructure and development cess (AIDC). Apart from these charges, basic excise duty is also levied on fuel products.
In Budget 2021, finance minister Nirmala Sitharaman announced an agriculture cess on petrol and diesel at ₹2.5 /litre and ₹4 /litre respectively. Following the imposition of this new cess, the basic excise duty (BED) and special additional excise duty (SAED) rates were reduced on fuel prices to ease the additional burden on consumers.
Answering to the question whether government has any plant to bring petroleum products under the purview of Goods and Service Tax (GST), Anurag Thakur said, “As per the section 9(2) of the CGST Act, inclusion of these products in GST will require recommendation of the GST Council. So far, the GST Council has not made any recommendation for inclusion of petrol and diesel under GST.”
Sitharaman earlier said that the decision to bring the fuels under GST will have to be taken by the GST Council. “Whenever the GST Council decides to take up this issue, they are well within their interest to take it up and discuss. It’s a call which the Council has to take,” she had mentioned last week.
The petrol and diesel prices touched record high in February. However, there has not been any revision in fuel prices in March. The rates kept unchanged across the four metro cities for the tenth consecutive day on Tuesday. Indian Oil Corporation, the country’s largest state-run oil refiner, had last hiked the petrol on 27 February to an all-time high of ₹ 91.17 in Delhi.
Meanwhile, the price of petrol in Delhi stands at ₹91.17 per litre while diesel is available for ₹81.47 on Tuesday. In Mumbai, petrol is priced at ₹97.57, while diesel costs ₹88.60, according to Indian Oil Corporation’s website.