Union Budget 2021: FM Sitharaman proposes agri cess on petrol, diesel

Union Finance Minister Nirmala Sitharaman has announced the imposition of Agriculture Infrastructure and Development Cess (AIDC) of 2.5 per litre on petrol and 4 per litre on diesel.

A woman on duty at a Kolkata petrol pump. (PTI)
A woman on duty at a Kolkata petrol pump.

Also Read : Weak diesel demand signals a slow rebound for industrial India

However, there would be no additional burden on the consumer overall as Sitharaman during Budget presentation also proposed to reduce Basic Customs Duty on these items.

"I propose an Agriculture Infrastructure and Development Cess (AIDC) on a small number of items. However, while applying this cess, we have taken care not to put additional burden on consumers on most items," Finance Minister Sitharaman said in her Budget speech.

Also check these Cars

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
₹ 8.25 - 10 Lakhs* *Expected Price
View Details
Mahindra S204 (HT Auto photo)
₹ 12 Lakhs *Expected Price
View Details
Rolls-royce New Ghost (HT Auto photo)
₹ 6.95 - 7.95 Cr* *Expected Price
View Details
Mg 4 Ev (HT Auto photo)
₹ 30 - 32 Lakhs* *Expected Price
View Details
Kia Carnival 2023 (HT Auto photo)
₹ 35 - 39 Lakhs* *Expected Price
View Details
Kia Sorento (HT Auto photo)
₹ 25 - 30 Lakhs* *Expected Price
View Details

"Consequently, unbranded petrol and diesel will attract basic excise duty of 1.4, and 1.8 per litre respectively. The Special Additional Excise Duty (SAED) on unbranded petrol and diesel shall be 11 and 8 per litre respectively. Similar changes have also been made for branded petrol and diesel," she added.

Sitharaman said that an AIDC of 2.5 per litre has been imposed on petrol and 4 per litre on diesel.

However, blended fuel-- M-15 petrol and E-20 petrol -- will be exempted 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, Sitharaman said.

First Published Date: 01 Feb 2021, 14:59 PM IST
Shopping Bag Shop Now
73% OFF
IDELLA Car Duster, Extendable Long Handle Microfiber Car Duster Exterior Scratch Free Car Cleaning Tool, Car Dust Brush for Truck, Pickup, SUV, RV, Motorcycle, Vehicles Cleaning,(Multicolor)
Rs. 239 Rs. 899
49% OFF
Antson Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable, Portable,Rechargeable Vacuum (2 in 1)
Rs. 994 Rs. 1,939
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard Curved Design - Grey
Rs. 389 Rs. 1,499
1% OFF
GOODAIR Clear Car Windshield Enhancer | Classic |12 Tablets
Rs. 295 Rs. 299

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
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.