Union finance minister Nirmala Sitharaman on Monday announced an agriculture cess on petrol and diesel at ₹2.5 /litre and ₹4 /litre respectively. This addition by the Centre comes at a time when the prices of both fuels have been touching new heights with multiple surges this month. However, Sitharaman said that the Agriculture Infrastructure and Development Cess (AIDC) — which has been imposed on such as gold, silver and agricultural products apart from petrol and diesel — would not act as an additional burden on the consumer.
“However, while applying this cess, we have taken care not to put additional burden on consumers on most items,” she said while presenting the Union Budget of this year.
Following the imposition of this cess, the Basic Excise Duty (BED) and Special Additional Excise Duty (SAED) rates have been reduced on petrol and diesel so that consumers don’t have to face additional burden, according to news agency PTI.
