The Centre has deferred the deadline to levy an additional ₹2 per litre tax on unblended diesel by one more year to April 1, 2025, according to a Central Board of Indirect Taxes and Customs (CBIC) said in a notification.
The levy on petrol and diesel that is not blended with ethanol and bio-diesel, respectively was announced in FY23 budget.
The move was in line with with government’s commitment to promoting biofuels and reducing crude imports. India remains the world’s third-biggest crude importer and consumer, importing around 85% of its total consumption.
It has set a target to cut imports by 10% to 67% by 2025 by enhancing domestic crude production, ethanol blending and shifting focus to renewables, green hydrogen and promoting electric vehicles among others.