Good news for citizens ! Jharkhand government has started Two Wheeler Petrol Cashback Scheme 2023 and is inviting online applications for the same. This 2 wheeler petrol scheme was initially launched on 26 January 2022. CM Hemant Soren led JH govt. offers Rs. 25 per litre relief in fuel price in the form of cash-back for 2 wheelers of the poor. It is a first such decision taken by a state to tackle rising fuel prices and benefit below poverty line (BPL) families.  

What is Jharkhand Two Wheeler Petrol Cashback Scheme

In Jharkhand Two Wheeler Petrol Cashback Scheme, govt. will subsidise Rs 25 per litre of petrol for ration-card holders with two-wheelers. The Rs. 25/L fuel price relief offer will come with a likely cap of 10 litres per family per month. In Jharkhand, petrol currently costs Rs. 100.13 per litre and diesel Rs. 94.93 per litre.

CM Announcement for Rs. 25/L Fuel Price Relief Offer

On 29 December 2021, while announcing a slew of schemes to mark two years of the JMM-led coalition government, Chief Minister Hemant Soren announced Rs. 25/L fuel price relief offer. CM said: "We know that the prices of petrol and diesel are skyrocketing, affecting the poor. There are motorcycles in houses of the poor, but people can't ride them because they don't have money for petrol. The person is not able to go to the market to sell his crop. We hear that people are mixing kerosene and petrol to ride motorcycles. We will reduce the price by Rs. 25 per litre of petrol."

Conditions for Petrol Subsidy for 2 Wheeler in Jharkhand

Those citizens who have ration cards will get the petrol subsidy with a cap of 10 litres per family for two-wheelers. The state government "may transfer the money directly into accounts". Jharkhand is the first state to adopt such an innovative measure to provide relief to a select group of people belonging to the middle-class and lower middle-class which spends on petrol for running two-wheelers. 

Objective of Two Wheelers Petrol Cash Back Scheme

As many as 23 states reduce the Value Added Tax on fuels to reduce petrol and diesel prices. Amongst states, the highest drop was in Karnataka (Rs 13.35 per litre of petrol), followed by over Rs 12 per litre of petrol in Mizoram and Puducherry. Moreover, while all states chose to forego revenues, Jharkhand has instead decided to provide subsidies and incur higher expenditure. The state overnment does not want to reduce VAT on petrol for everyone and will opt for "objective subsidy benefiting the poor".

Implementation of 2 Wheeler Petrol Cash-back Yojana

There are 61 lakh families that have ration cards in Jharkhand. Out of that, many would have motorcycles. It could be 2 lakh, 10 lakh or 20 lakh, and that needs to be checked and corroborated. One way to give the subsidy would be with Aadhaar based identification at petrol pumps, and provide the subsidy there itself. 

Why Petrol Price Relief Offer is Required

Between February and May 2021, the Central Government had increased excise duty on petrol and diesel by Rs. 13 per litre and Rs. 16 per litre, respectively, amid a sharp decline in revenues due to Covid and related restrictions. Now the central govt. has announced some excise duty cut on petrol and diesel, prompting some states to announce their own tax cuts to reduce prices. 
Maharashtra, Tamil Nadu, Andhra Pradesh, Telangana, Kerala and West Bengal are among states that have not cut state taxes on petrol and diesel. In Jharkhand, govt. will now offer Rs. 25/L fuel price relief to benefit poor families.

Data is a reworked version of article published in Indian Express accessible through the link -