Govt defers excise duty on unblended fuel

New Delhi, Oct 1 (Agency) In a relief for consumers in the festive season, the government has decided to defer the plan to levy excise duty of Rs 2 per litre on unblended diesel and petrol. The additional levy on unblended petrol would now kick in from November 1 while the same will apply on unblended diesel from April 1, a gazette notification said on Saturday. The notification said the decision was necessary in the interest of the public.

While presenting the Union Budget, Finance Minister Nirmala Sitharaman had proposed the additional levy on the two key auto fuels from October 1. “Blending of fuel is a priority of this government. To encourage the efforts for blending of fuel, unblended fuel will attract an additional differential excise duty of Rs 2/litre,” Sitharaman had said. In its bid to enhance India’s energy security, reduce import dependency on fuel, save foreign exchange, address environmental issues and give a boost to the domestic agriculture sector, the government has been promoting the Ethanol Blended Petrol (EBP) Programme.