TCCI caution on ‘retail inflation’

When the Union Budget for 2021-2022 was tabled on February 1, 2021, petrol was sold at Rs 89.37 and diesel at Rs 82.29 per litre. In the budget, Agriculture Infrastructure and Development cess (AIDC) of Rs 2.50 was imposed on petrol and Rs 4 per litre on diesel and it was informed that other duties and cess as revised, consequent to imposition of AIDC and overall there would be no additional burden on the consumers. 

But, just within 20 days of the Union Budget, petrol price has been increased by Rs 4 and diesel by Rs 4.30 per litre. The basic price of petrol and diesel per litre is at Rs 31.82, but the Centre has levied excise duty at Rs 32.98 on petrol and Rs 31.83 on diesel per litre. Adding to the woes, state government also levied Value Added Tax (VAT) on petrol at Rs 19.48 (34%) and on diesel at Rs 15.33 (25%). Apart from these, people and trade bodies are also overburdened with road infrastructure and development cess levied on the prices of petrol and diesel at a maximum of 69 per cent against taxes alone. It’s the highest price ever seen by consumers, he said. 

Hence, TCCI has urged the Centre and state to take steps to immediately reduce excise and VAT levied on petroleum fuels.