Increase Basic Excise Duty on Unblended Petrol and Diesel


Quick Summary
The Indian Government has announced an increase in the basic excise duty on unblended petrol and diesel. This change will come into effect from 1st October 2022. New rates have been specified for both branded and unbranded petrol and high-speed diesel that are not blended with ethanol, methanol, or bio-diesel according to Bureau of Indian Standards.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

Notification No. 01/2022 -Central Excise

New Delhi, the 1st February, 2022

G.S.R.90(E). – In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 11/2017-Central Excise, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 793(E), dated the 30th June, 2017, namely:-

In the said notification, in the Table, –

(i) against Sl. No. 2, in column (3), after item (ii), the following proviso shall be inserted with effect from the 1st day of October, 2022, namely:-

“Provided that nothing contained in this Sl. No. shall apply to motor spirit, commonly known as petrol, which is intended for retail sale to consumers, not so blended with ethanol or methanol as conforming to Bureau of Indian Standards specifications from time to time for blended motor spirit.”;

(ii) after Sl. No. 2 and the entries relating thereto, the following serial number and entries shall be inserted, with effect from the 1st day of October, 2022 namely: –

“2A. 2710 Motor spirit commonly known as petrol which is intended for retail sale, not so blended with ethanol or methanol as conforming to Bureau of Indian Standards specifications from time to time for blended motor spirit-

(i) without a brand name;

(ii) with a brand name.

Rs. 3.40 per litre

Rs. 4.60 per litre”;

(iii) against Sl. No. 3, in column (3), after item (ii), the following proviso shall be inserted, with effect from the 1st day of October, 2022 namely:-

“Provided that nothing contained in this Sl. No. shall apply to High Speed Diesel (HSD), which is intended for retail sale to consumers, not so blended with alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio-diesels as conforming to Bureau of Indian Standards specifications from time to time for blended diesel.”;

(iv) after Sl. No. 3 and the entries relating thereto, the following serial number and entries shall be inserted, with effect from the 1st day of October, 2022 namely: –

“3A. 27101930 High speed diesel (HSD) intended for retail sale, not so blended with alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio-diesels as conforming to Bureau of

Indian Standards specifications from time to time for blended diesel –

(i) without a brand name;

(ii) with a brand name.

Rs. 3.80 per litre

Rs. 6.20 per litre”.

[F. No. 334/01/2022-TRU]

(Vikram Vijay Wanere)
Under Secretary to the Government of India

Note:- The principal notification No. 11/2017-Central Excise, dated the 30th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 793(E), dated the 30th June, 2017 and last amended by notification No.1/2021-Central Excise, dated the 1st February, 2021 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 83 (E), dated the 1st February, 2021.

FAQ :

The main change is the increase in basic excise duty on unblended petrol and diesel.

The increased excise duty will take effect from 1st October 2022.

For unblended petrol, the new excise duty is Rs. 3.40 per litre without a brand name and Rs. 4.60 per litre with a brand name.

For unblended High Speed Diesel (HSD), the new excise duty is Rs. 3.80 per litre without a brand name and Rs. 6.20 per litre with a brand name.

No, this notification specifically applies to motor spirit (petrol) and High Speed Diesel (HSD) that are not blended with ethanol, methanol, or bio-diesel as per Bureau of Indian Standards specifications.

 
Notification No : 01/2022 -Central Excise
Source : https://www.indiabudget.gov.in/doc/cen/cen0122.pdf



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