Petrol and diesel prices hike coming after Budget 2021? Here is the answer

Has Budget 2021 made fuel costlier for you? Will petrol and diesel prices rise now after presentation of Budget 2021? Finance Minister Nirmala Sitharaman today announced imposition of Agriculture Infrastructure and Development Cess (AIDC) on petrol and diesel. The AIDC of Rs 2.5 per litre has been imposed on petrol and Rs 4 per litre on diesel. What will this do the pockets of the common man? Will it additionally burden him or reduce his outgo? Find the answer here!  

Consequent to the imposition of AIDC of Rs 2.5 per litre has been imposed on petrol and Rs 4 per litre on diesel, the government reduced the Basic Excise Duty (BED) and Special Additional Excise Duty (SAED) rates on petrol and diesel prices. 

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So, what is the petrol, diesel prices takeaway for the common man? Well, rejoice as this will not put an additional burden on the overall price for the consumers, the Finance Minister said in her Budget 2021 speech. 

“Consequently, unbranded petrol and diesel will attract basic excise duty of Rs 1.4, and Rs 1.8 per litre respectively. The SAED on unbranded petrol and diesel shall be Rs 11 and Rs 8 per litre respectively. Similar changes have also been made for branded petrol and diesel,” the FM said in her speech. 

On Blended Fuel: M-15 Petrol and E-20 Petrol - Exemptions from cesses and surcharges on the lines of other blended fuels (like E-5 and E-10) if these blended fuels are made of duty paid inputs. 

Our government has kept fuel supplies running across the country without interruption during the COVID-19 lockdown period. Taking note of the crucial nature of this sector in people’s lives, the following key initiatives are being announced:  

Key announcements in Petroleum and Natural Gas Sector 

-- Ujjwala Scheme which has benefited 8 crores households will be extended to cover 1 crores more beneficiaries.  

-- We will add 100 more districts in next 3 years to the City Gas Distribution network. 

-- A gas pipeline project will be taken up in Union Territory of Jammu & Kashmir.  

-- An independent Gas Transport System Operator will be set up for facilitation and coordination of booking of common carrier capacity in all-natural gas pipelines on a non-discriminatory open access basis.