Tax from petroleum products being used in infra development: Nitin Gadkari

  • Impact of fuel on transport freight cost by vehicle is 34%.
NHAI awarded 31 projects of 890 km length at a cost of ₹26,322 crore from April to August 2020, said Gadkari. (PTI)
NHAI awarded 31 projects of 890 km length at a cost of ₹26,322 crore from April to August 2020, said Gadkari.

New Delhi: Union Minister Nitin Gadkari on Thursday said excise duty collected from petroleum products are being used for infrastructure development and other development items. The road transport and highways minister said this in the Lok Sabha while replying to a question on the impact of rising fuel prices on the logistics cost of transportation in the country.

"The excise duty rates on petroleum products have been calibrated to generate resources for infrastructure and other development items of expenditure, keeping in view the prevalent fiscal situation," Gadkari said.

Also check these Vehicles

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
40 kWh 85 Kmph 150 Km
₹ 8.25 - 10 Lakhs
View Details
Porsche 911 Gt3 (HT Auto photo)
3996.0 Petrol Automatic
₹ 2.50 Cr
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
View Details
Lexus Nx (HT Auto photo)
2494.0 Multiple Both
₹ 64.90 - 71.60 Lakhs
Compare
View Offers
Rolls-royce New Ghost (HT Auto photo)
UPCOMING
6750 cc Petrol Automatic
₹ 6.95 - 7.95 Cr
View Details
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
2999.0 cc Petrol Automatic
₹ 1.30 Cr
Compare

According to the minister, the logistic cost of transportation through road depends on several factors such as capital cost of the vehicle, salaries, insurance, permit tax, maintenance, fuel, toll tax and other miscellaneous expenses.

Citing a study conducted by the Ministry of Road Transport & Highways through a consultant, Gadkari said the impact of fuel is 34 per of the total transport freight cost by vehicle.

"The transport companies may or may not pass the increased cost depending upon the market situation or capacity to absorb additional cost etc," he said, quoting the study.

Replying to a separate question, Gadkari said the national and local level lockdowns and restrictions due to COVID-19 posed constraints to the movement and supply/availability of materials, machinery and labour, which affected the progress of works.

"However, due to several initiatives taken by the government under Atmanirbhar Bharat to provide relief measures to contractors/ concessionaires/ consultants, the maintenance and development work on National Highways have overshot the targets," he noted.

The minister pointed out that NHAI awarded 31 projects of 890 km length at a cost of 26,322 crore from April to August 2020.

The length of projects awarded by NHAI in the April to June period of 2021-22 stood at 383 km against 890 km in the same period last year.

First Published Date: 22 Jul 2021, 20:24 PM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.