Fuel prices: PIL in MP HC claims discrepancy in ethanol tax

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Jabalpur, Feb 22 (PTI) A Public Interest Litigation was filed in the Madhya Pradesh High Court on Monday seeking reduction in fuel prices, with the petitioner claiming that consumers have to pay high levies for mixing of ethanol in petrol and diesel.

Petitioner Manish Sharma, coordinator of NGO Nagrik Upbhokta Margdarshak Manch, told PTI tax on ethanol was 5 to 7 per cent but the levy charged from consumers is as high as 25 to 35 per cent per litre of petrol and diesel, which means the buyer ends up paying Rs 4 to Rs 5 extra as tax.

Oil companies blend 6 to7 percent of ethanol in petrol and diesel per litre under the National Policy on Biofuels, he said, adding that fuel pumps do not mention the ethanol details in the purchase bill.

He said he had issued legal notices to the Union Minister of Petroleum and Natural Gas and oil companies to seek information on the policy under which consumers were taxed for ethanol blended in fuel but only one firm responded, after which it was decided that a PIL be filed in HC.

Additive-mixed petrol is retailing at over Rs 102 per litre in Bhopal while the cost of normal petrol and diesel is Rs 98 and Rs 89 respectively. PTI COR LAL BNM BNM