FKCCI urges centre to reduce duties on fuel

FKCCI urges centre to reduce duties on fuel

Bengaluru: Federation of Karnataka Chambers of Commerce & Industry (FKCCI) demanded the Union government reduce the duties of petrol and diesel to 15% enabling the industries to function smoothly. 

FKCCI President Perikal M Sundar writes Union Minister for Petroleum and Natural Gas, Dharmendra Pradhan requesting him to reduce the duties on fuel by 15% that would reduce the price of petrol by 40%. In the letter, Mr. Sundar stated that after consulting with the state government, the Centre can decide to reduce the duties on fuel. 

India is witnessing a sharp rise in both Petrol and Diesel almost on daily basis. 

Though there is a fall in the price of crude oil in the International Market, the price of petrol and diesel is increased regular basis which has become a pain for common man, all economical activities including agriculture, FKCCI president stated in the letter. 

He further mentioned that all economical activities including, Industry, Service and Agriculture have almost come to standstill because of two successive waves of the Covid-19 Pandemic. Millions of people have lost jobs, business establishments are incurring huge losses, and are not able to make essential payments like statutory taxes, electricity bills, wages, bank repayments, and other maintenance charges.

In these difficult times, the price rise of petrol and diesel have hurt the Nation, especially the middle-class segment who use two-wheelers, autos, taxis, etc. for day-to-day movement, he stated. 

Surprisingly, though the basic cost of fuel is only about Rs.32/- liter on average, 35% duty charged by Government of India and 32% duty charged by the State Government make the price to reach more than Rs.100/- liter of petrol and Rs.92/- liter of diesel, cited in the letter. 

Mr. Sundar stated that the prices of both Petrol and Diesel are skyrocketing in the recent past in the country. Fuel is an essential requirement for the common man, agriculture, business activities, trade, industry, service, and all other economical activities. Daily price rise in fuel is impacting the day-to-day life of the common man and all other economic activities. An increase in fuel price will lead to an increase in the cost of transportation, which will further increase the manufacturing and operating costs of all these activities.

Though the basic fuel price is about Rs.32/liter, Centre levies about 35% duty, and the State levies about 32% duty on fuel which increases the price by 300%. 


Federation of Karnataka Chambers of Commerce & Industry (FKCCI) is a State Level Apex Body representing more than 4,000 members across Industry, Service, and Trade establishments, about 400 Associations, and 30 District Chambers of Commerce and Industry in Karnataka State. They include importers and exporters both in the Manufacturing and Trade Sector.  

The following table provides the pattern of rise in fuel price in the previous years.

Year 2003- 2006 -2009 - 2012 - 2015 - 2018 -2021
Petrol/Litre 33.49 -43.50 -44.70 -65.60 -60.49 -75.55- 100.00
Diesel/Litre 22.12 -30.45 -30.86 -40.91 -49.71 -67.38-- 92.00