Cess on crude oil doubled to Rs 1,800 per tonne

Ad valorem excise on motor spirit down from 90% to 32%

In view of the abolition of Administered Price Mechanism on petroleum products from 1 April 2002, and in order to provide for the subsidy on LPG and kerosene oil, Union Finance Minister Yashwant Sinha today proposed to make some changes in the duty structure of petroleum products.

Presenting the Union Budget 2002-03 in parliament today, Sinha announced that the rate of cess applicable to indigenous crude oil under the Oil Industry (Development) Act will be increased from Rs 900 per metric tonne to Rs 1,800 per metric tonne with effect from 1 March 2002.

However, Sinha reduced the ad valorem rate of excise duty applicable to motor spirit from 90% to 32%, and imposed on it a surcharge of Rs 6 per litre. But the surcharge on ethanol doped motor spirit will be Rs 5.25 per litre.

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