There are various speculations about Budget 2025. In the latest case, brokerage reports are indicating that the oil and gas sector may get relief in the budget. There is a possibility of relief in tax on fuel. In the upcoming budget, not only CNG excise duty can be reduced, but also sufficient funds can be provided for LPG subsidy.
CNG excise duty may be reduced…
The government currently levies 14.4 percent excise duty on CNG, which increases its price by Rs 9.5 per kg. Industry experts believe that by reducing this duty, the impact of the withdrawal of the Cheap Administered Pricing Mechanism (APM) from the sector can be corrected.
Subsidy for LPG loss…
Public sector oil marketing companies (OMCs) are facing huge under-recovery on subsidised LPG gas. This challenge is being seen due to high global prices and low domestic sales rates. According to reports, the total under-recovery during the first 9 months of FY25 was Rs 29,000 crore. To tackle this, the government may allocate Rs 35,000 crore as subsidy. Under this, Rs 10,000 crore may be allocated for FY25 and Rs 25,000 crore for FY26.
Oil products can be brought under the ambit of GST…
Bringing petroleum products under the ambit of Goods and Services Tax (GST) has been a major demand of the industry. The Confederation of Indian Industry (CII) has suggested GST 2.0 in its budget memorandum, which suggests bringing petrol, aviation turbine fuel (ATF) and natural gas under the GST structure. However, state governments have opposed the move, citing potential revenue loss.
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