NEW DELHI : Benefit of petrol price reduction declared on Thursday in lieu of cheaper crude oil in international market may be shortlived as the Centre contemplates to double the cess on both petrol and diesel from Rs 2 to Rs 4 a litre for the central road fund.

Road Transport Ministry headed by Nitin Gadkari has readied a Cabinet note to be brought before the Cabinet shortly to allow the higher cess to raise money that is distributed for the national highways as also to the state PWDs for upkeep of the state roads, Railways and under the PM”s Rural Road Programme (Gramin Sadak Yojana).

The cess recovery was introduced in November 2,000 and the government has collected over Rs 1.25 lakh thousand crores until 2013 through a cess of Rs 2 per litre introduced in November 2000.

The Cabinet note says the government does not have enough money for various development works and as such an increased cess will come handy in not only development of the national highways and rural roads but also in construction of the railway underpasses and railway over-bridges.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal