Representative image Photograph:( AFP )
Fuel prices were already up so all eyes were on Budget 2021 to know its impact on petrol and diesel rates
Union Budget 2021 was presented in the parliament on Monday, February 1. The first paperless budget presented by Finance Minister Nirmala Sitharaman is likely to have an impact on petrol and diesel prices. Fuel prices were already up so all eyes were on Budget 2021 to know its impact on petrol and diesel rates.
Here's how the prices will be impacted
The government has imposed Agriculture Infrastructure and Development Cess (AIDC) on petrol and diesel. This cess will be Rs 2.5 per litre on petrol and Rs 4 per litre on diesel.
While this may appear to suggest that prices will increase but the finance minister said that the implementation of the measure will be done in a manner that wouldn't put too much pressure on consumers' pockets.
The finance minister said that Basic Excise Duty (BED) and Special Additional Excise Duty (SAED) on petrol and diesel have been reduced to give relief to citizens.
Rising oil prices has been a much-discussed issue lately as these prices have a direct impact on private mobility as well as food prices.
Union Oil Minister Dharmendra Pradhan had said earlier the output cut by Saudi Arabia was one of the main reasons why fuel prices were up.
“A few months back, we all were discussing consumption-centric revival, demand-driven revival, and we were supposed to restrict our production cut, and ramp-up (of production) gradually by January. But contrary to that, we all are controlling oil production (now),” Pradhan was earlier quoted as saying by PTI.