Union Budget 2022: A Hike in Petrol and Diesel Prices?
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The Union Budget 2022 will have a substantial impact on the pricing of gasoline and diesel. The government proposed an extra excise levy on petroleum products supplied without a combination of ethanol or biodiesel in its Union Budget. As a result, diesel prices are expected to climb in most sections of the country as well. Diesel prices may rise to Rs 2 per litre on October 1, 2022. According to the Union Budget 2022, petrol prices may rise in some places, such as the North-East.
Ethanol, which is derived from sugar cane, is added to gasoline at a rate of 10%. This blending has been permitted in order to decrease the dependence on oil imports and offer farmers an alternative source of revenue. Even now, ethanol-blended gasoline is available throughout 75–80% of the country.
Diesel is mixed with biodiesel, which is made from non-edible oil seeds. Given the widespread use of diesel in agriculture and transportation, an extra excise levy on insignificant fuels may raise petrol and diesel costs.
According to the sources in the petroleum sector, the government’s decision would push oil firms to blend ethanol into gasoline because there is a lower probability of establishing a framework for the purchase of biodiesel in eight months. While there hasn’t been much change from last year’s Union Budget for the salaried class and the average man in the country, adjustments in excise tax are expected to have a big influence.
