India’s reinstatement of excise tax on biodiesel seen hitting OMCs hard

April 24, 2017 |

In India, oil marketing companies are getting hit hard with a new 6% excise duty on biodiesel along with a slew of other taxes that they say will make the mandated biodiesel blending unviable. Biodiesel was excise duty-free for 10 years. The mandate’s implementation has been delayed to at least May 1 from the planned April 1 start date, however. Without excise duty, biodiesel is cheaper than fossil diesel but with the duty it may be more expensive. Biodiesel prices are set based on the Malaysian palm oil board’s established price.

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Category: Policy

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