Diesel prices to get costlier by Rs2 per litre from October 01, petrol to rise as well

2 Feb 2022 , 11:27 AM

Diesel prices are expected to get costlier by Rs2 per litre across India starting from October 01. The Finance Minister Nirmala Sitharaman who presented Union Budget 2022, announced key measures for blended fuel. Also, petrol prices may see some increase in their price levels.

In Budget 2022, the blending of fuel was among the priorities of the Government.

FM announced that to encourage the efforts for blending of fuel, unblended fuel shall attract an additional differential excise duty of Rs2 per litre from the 1st day of October 2022.

Currently, 10% ethanol is blended or mixed in petrol to trim down dependency on oil imports and support farmers with an additional source of income. In India, about 75-80% of ethanol-blended petrol is supplied.

Furthermore, at present, there is an experimental blending of biodiesel that is extracted from non-edible oilseeds, in diesel which is seen as the most used fuel across India.

The additional duty on unblended fuel is said to encourage oil companies for procuring more ethanol for mixing in petrol. Also, this will push oil companies to reflect the additional duty on diesel.