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Petrol, diesel prices to be cheaper by Rs 5 in Assam from tonight; COVID-19 cess removed from IMFL

Petrol, diesel prices to be cheaper by Rs 5 in Assam from tonight; COVID-19 cess removed from IMFL

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GUWAHATI: With the state assembly elections round the corner, the Assam government finally withdrew the COVID-19 cess of Rs 5 per litre of petrol and diesel and the 25 per cent cess on Indian made foreign liquor (IMFL) effective from tonight.

Presenting the state budget 2021-22 at the assembly, finance minister Himanta Biswa Sarma said the cess have been withdrawn in view of the improvement in the COVID-19 situation in the state. “Since COVID-19 situation has improved in the state, it is not ethical to collect cess for it. So, I proposed to withdraw the cess and the Cabinet has given its nod,” the minister said.

“We have also taken into consideration the demand of the people to reduce prices of petrol and diesel in view of the unprecedented price rise of fuel. With the cess withdrawn, Assam will be a state offering petrol at the lowest price. Only Gujarat is offering petrol few paise lower than Assam. As far as diesel is concerned, Assam will be behind Haryana, Himachal Pradesh and Uttar Pradesh as far as lowest price is concerned. The state exchequer will incur as loss of Rs 1100 crore in the next fiscal following withdrawal of the cess,” Sarma explained.

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Apart from Bombay High, Assam and Gujarat are the petroleum producing states in India.

Petrol costs Rs 90.41 and diesel Rs 84.29 in Guwahati on Friday.

The cess fuel was levied in April last year, while that on liquor was levied in May last year to raise funds to deal with the COVID-19 pandemic situation.

Sarma had hinted at the withdrawal of the cess on fuel on New Year eve, but it took over a month for the assurance to materialise. The opposition parties had been accusing the BJP-led government of raising party funds for the election expenses from the two cess. The BJP has rubbished the allegation though.

Edited By: Imtiaz Ahmed
Published On: Feb 12, 2021