look news india
The upcoming budget is expected to get relief from the oil and gas sector from 2025. Brokerage reports and industry experts believe that the government can encourage this sector with tax cuts and subsidies on fuel.
Chances of cutting excise duty on CNG
Currently, government 14.4% excise duty on CNG It puts it closer to the price of CNG Rs 9.5 per kg It increases.
- Experts believe that by reducing this duty Chiper Administrative Pricing Mechanism (APM) The effect of can be balanced.
- This step will make CNG more economical, which will also benefit the automobile and transport industry.
Budget will increase for LPG subsidy
Public sector oil marketing companies (OMCs) LPG subsidy Whatever cylinders are facing heavy under-rivers.
- Under-riches: It is close in the first 9 months of FY 2025 29,000 crore rupees doing.
- Possible solution:
- Government for LPG subsidy 35,000 crore rupees Can allocate funds of.
- Out of it 10,000 crore rupees For FY 2025 and 25,000 crore rupees FY will be kept for 2026.
- This step will prove to be a relief for domestic LPG consumers.
Suggestion to bring petroleum products under GST
The industry has been demanding for a long time that petroleum products Goods and Services Tax (GST) Be brought under
- CII suggestion:
- GST 2.0 Under this, it has been recommended to bring petrol, aviation turbine fuel (ATF), and natural gas into GST framework.
- This step will help simplify taxation and reduce costs for businesses.
- Opposition to state governments:
- State governments potential Revenue loss Is opposing this step citing.
- A large part of the state tax comes on petroleum products, which is an important source of their revenue.
What will be the benefit of these changes in the oil and gas sector?
1. CNG price reduction:
CNG will be more economical by tax cuts, making more people use CNG vehicles.
2. Relief to LPG consumers:
The increase in subsidy will relieve domestic consumers from inflation and strengthen the financial position of OMC.