Thursday, 31 December 2015

Standing Committee raps ministry for poor response: Government says no cess to fund refinery upgradation programme

The government has made  it clear that no cess will be levied on crude and petroleum products to garner capital for the Rs 80,000 crore refinery upgradation programme to meet new fuel emission norms.
8The Parliamentary Standing Committeefor the petroleum ministry had strongly urged the ministry to take a decision on the recommendation to levy a High Sulphur Cess of 75 paise per litre on BS-III fuel to raise Rs.10,000 crore and special fuel upgradation cess of 75 paise per litre on all gasoline and diesel sold in India to mobilize another Rs.64000 crore to fund fuel upgradation projects of refineries as envisaged in the Auto Fuel Vision and Policy 2025.
8The government has now rejected the claim for levy of a cess, claiming that there is no real need for one.
8In its reply, the petroleum ministry said, "as both diesel and petrol are deregulated products, the OMCs can pass on the additional costs to consumers and imposition of cess is no longer necessary."

For more details visit indianpetroplus.com

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