Jharkhand News: Jharkhand Government to Impose Cess on Petrol and Diesel, Prices May Increase by ₹2-3

Ranchi, December 26, 2024: The state government is considering imposing a cess on petrol and diesel, which could lead to an increase in fuel prices by ₹2-3 per liter. This move aims to bolster the state’s revenue and support infrastructure development. Consumers and stakeholders are closely monitoring the development, given its potential economic impact.

Purpose Behind the Cess: Boosting State Revenue

The primary objective of introducing this cess is to generate additional revenue for the state. Officials have indicated that the funds will be directed toward infrastructure projects, particularly road construction and maintenance. By implementing the cess, the government aims to secure sustainable funding for these initiatives without relying on external borrowings.

Projected Impact on Petrol and Diesel Prices

If approved, the cess will directly affect fuel prices, leading to an increase of ₹2-3 per liter for both petrol and diesel. This rise will inevitably impact transportation costs, potentially causing a ripple effect across various sectors, including logistics and essential goods. Consumers may face higher expenses, adding to their financial burden amidst fluctuating global fuel prices.

Details of the Proposed Cess and Implementation Timeline

The Road Construction Department has already prepared a draft framework outlining the cess’s rules and regulations. This proposal will soon be presented to the state cabinet for final approval. While the exact mechanism for collecting the cess is yet to be finalized, discussions are ongoing to ensure its smooth implementation. Sources suggest the government aims to roll out the policy by the end of the week.

Estimated Revenue from the Cess for the State Government

Preliminary estimates indicate that the cess could generate approximately ₹350 crores annually for the state. This significant revenue boost is expected to fund critical infrastructure projects, enhancing the state’s development prospects. Initially, the government considered increasing VAT on fuel but opted for a cess to streamline revenue collection and minimize administrative challenges.

Broader Implications

The proposed cess underscores the government’s commitment to addressing infrastructure challenges while balancing fiscal responsibilities. However, the decision has sparked debates among stakeholders, with concerns about its impact on consumers and businesses. Industry experts emphasize the need for transparent communication and efficient utilization of the additional revenue to justify the price hike.

By presenting this policy, the state government aims to address pressing infrastructure needs while ensuring financial sustainability. The coming days will reveal how this move shapes public sentiment and economic dynamics.