My Eco Energy to pass on benefits of 18 percent on its bio-diesel

My Eco Energy has garnered a lot of interest on its product and is in talks with commercial fleet owners and others for supply of the green fuel. With an average saving of around Rs 10 the company feels GST is a boon for the product.

By Nilesh Wadhwa

23 Jun 2017

7363 Views

My Eco Energy to pass on benefits of 18 percent on its bio-diesel

Pune-based My Eco Energy (MEE), which produces the Indizel brand of bio-diesel, has announced that it will pass on a price benefit of up to 18 percent after the implementation of GST from July 1.

The Goods and Services Tax (GST) has seen different segments experiencing different impacts. While luxury carmakers like Audi, BMW, Jaguar Land Rover and Mercedes-Benz have already reduced vehicle prices ahead of GST, consumer electronics goods are expected to see a rise in price.

At present, Indizel costs Rs 2 less than that of diesel retailing around Rs 56 for a litre in Maharashtra. Petrol and diesel, which are not under the purview of GST, will see no change in the price mechanism. With Indizel, which comes under the ambit of the new GST regime, consumers will be able to offset credit for taxes paid on GST, resulting in retail prices to be regular diesel price minus 18 percent resulting in saving of almost Rs 10.

Speaking to Autocar Professional, Santosh Verma, director, MEE, says, “We have received a lot of interest from across the country. As Indizel is not produced from traditional fuel, the raw materials come under the ambit of GST. As a result, we are able to pass on the benefit to the consumer. Anyone with a valid Goods and Services Tax Number (GSTN) will be able to claim credit where applicable on Indizel.”

Earlier, the company had spoken about its plans to sell bio-diesel in canisters (5, 10 and 20 litres) through a retail supply model in cities across the country. “We are in advanced stages of testing out the feasibility of stocking of the fuel in cans. We have already tested out different cans and have shortlisted stackable cans that will be convenient for storage at retail levels. The retails sales will soon come out,” said Verma.