BIG BREAKING: Good news for oil and sugar companies! 12%-20% excise concession on ethanol-blended petrol, diesel; no green tax from October 1

BIG BREAKING: Good news for oil and sugar companies! 12%-20% excise concession on ethanol-blended petrol, diesel;  no green tax from October 1

Zee Business EXCLUSIVE:  The government has announced a concession in excise duty for 12%-15% ethanol-blended petrol, and 20% on blending it with diesel. The move was aimed at bringing down the price of the fuel, Zee Business correspondent Ambarish Pandey told Managing Editor Anil Singhvi in this exclusive report.

To promote Ethanol mixing in diesel and petrol, the government slashed excise duty charges further. Moreover, Finance Minister Nirmala Sitharaman in the union budget 2022, referenced that unblended fuel will draw in an extra differential excise charge of ₹2/liter from 1st October 2022, said Ambarish.

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To make the recent development more clear, he said that if you have purchased 1-liter petrol and have blended 15% of ethanol,  then the excise duty will be charged on 85% of the petrol and the rest of 15% ethanol will only incur the state tax.

This implies two things- one the govt is promoting ethanol-blending to save up the import duties and foreign exchange. Second, the ethanol-blending promotion will provide cost-cutting to the domestic sugarcane farmers, he further said.

This recent move of the government will eventually provide relief to the consumers as the petrol prices will dip because the green tax of Rs 2 will not be levied from 1st Oct to accelerate reception of the cleaner fuel, said Ambarish to Zee business.

The sugar and oil companies will notice less tax burden in the coming days. This is indeed a good piece of news for IOC, BPCL, HPCL, sugar and oil companies, claimed Zee Business Managing Editor.

Among the sugar stocks, Anil Singhvi recommended a buy in Balrampur Chini stock.