Union Budget 2021: Government proposes agri cess on petrol, diesel

As part of the Union Budget 2021-22, Union Finance Minister Nirmala Sitharaman proposed Agriculture Infrastructure and Development Cess (AIDC) of Rs 2.5 per litre be levied on petrol and Rs 4 per litre on diesel. This could have made petrol and diesel prices more expensive.

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However, the Basic Excise Duty (BED) and Special Additional Excise Duty (SAED) rates were reduced so that customers don’t bear the additional burden. 

“Consequent to imposition of Agriculture Infrastructure and Development Cess (AIDC) on petrol and diesel, Basic excise duty (BED) and Special Additional Excise Duty (SAED) rates have been reduced on them so that overall consumer does not bear any additional burden,” the Minister said.

Thus, excise duties of Rs 1.4/litre and Rs 1.8/litre will be levied on unbranded petrol and diesel, respectively. Similarly, the SAED on unbranded petrol and diesel will be Rs 11 and Rs 8 per litre, respectively.

Similar changes were made for branded petrol and diesel.

This comes at a time when prices are sky-rocketing across India.

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The price for petrol in Delhi recently reached Rs 86 per litre and Rs 93 per litre in Mumbai.

Similarly, diesel price in Delhi has crossed Rs 76 per litre and Rs 83per litre in Mumbai.