Oil cos likely to absorb Rs 2 per litre excise duty on unblended petrol

Since there is inconsistency in ethanol blending levels across fuel depots, pricing petrol for consumers with the Rs 2 variation on some days is tricky

The Rs 2 per litre excise duty on unblended fuel is not likely going to impact most consumers according to officials from oil marketing companies. This additional duty on petrol proposed in the Budget 2022-23 will have to be absorbed by the oil companies instead.

Highlighting Centre's focus, Finance Minister Nirmala Sitharaman said, “Blending of fuel is a priority of this Government. To encourage the efforts for blending of fuel, unblended fuel shall attract an additional differential excise duty of Rs 2 a litre from the first day of October 2022.”

“According to proposals, consumers that buy fuel from retail