OMC shares hit by agri cess on fuel; fineprint shows zero impact

OMC shares hit by agri cess on fuel; fineprint shows zero impact

NEW DELHI: Shares of oil retailed pared early gains as the government proposed imposing agri cess on fuels, which some feared will make petrol and diesel more expensive. The government plans to slap agricultural cess on petrol at Rs 2.5 per litre and on diesel at Rs 4 per litre.

“This is madness! Farm cess of Rs 2.5 per litre on Petrol Rs 4 per litre on diesel and people thought no increase in taxes…,” said Sandip Sabharwal, an independent market analyst. Though, he later added, “if cess shifts from excise duty then (there will be) no impact.” Shares of

and were trading in the red while oil explorers ONGC was trading with gains.

But the Budget fineprint showed no impact on consumers. “Consequent to imposition of Agriculture Infrastructure and Development Cess (AIDC) on petrol and diesel, the 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. 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,” the FM said in the Budget speech.

On Monday, the price of petrol in Mumbai is Rs 92.86 per litre, it is Rs 87.69 per litre in Kolkata, and it has reached Rs 88.82 per litre in Chennai. In some cities in Rajasthan, the prices have hit Rs 101 per litles already.

The rate of diesel in Delhi is Rs 76.48, it is at Rs 80.08 in Kolkata, it has reached Rs 77.20 in Noida, and it is at Rs 81.71 in Chennai.

Source link


Please enter your comment!
Please enter your name here