Keeping in mind, the recent hike in Petroleum products specially petrol and diesel by the Union Government, the Food Civil Supplies&Consumer Affairs Deptt. Govt. of Mizoram feels that the public need to be enlightened on the matter and reasons thereof - for which it has issued a statement in public interest.
India imports about 80% of its oil requirement and in the process spends a huge amount of money for meeting the domestic demand for oil. The international oil prices, of late being volatile; domestic prices too are not immune to fluctuations. Despite the high input cost, the Government has always met the demand. The Govvernment spends huge additional financial resources in subsidising thereby lessening the burden of the public specially the poor people and sells oil in the domestic market at prices lower than international prices. For example, the price of kerosene in the international market is about Rs. 19 per litre whereas in Mizoram it is Rs. 13.10 per litre. To make the prices of LPG cylinders at par with international prices, an increase of Rs. 261 per cylinder is needed but the Govt. has increased the price only by Rs. 35 and the current price of an LPG cylinder stands at Rs. 339.35(showroom price). During 2010 - 2011, the government will spend about Rs. 53,000 crores to offset the international prices.

Mizoram depends financially and also for its foodgrain requirement on the Union Government, and hence it feels necessary to finds ways to generate additional revenues. The total requirement of rice every month by  Mizoram is about 1,32,000 quintals, out of which 52,210 quintals is met Union Government. To bridge the deficit requirement, about 80,000 quintals of rice is procured by the State Government at an economic cost of Rs. 2140 per quintal. But still, the Government provides the additional rice procured at economic cost at a subsidized rate of Rs. 950 per quintal to the public and therby spends Rs. 9.16 crores every month to meet the need.

To continue to provide rice at subsidized rates to the public without burdening the poor,  the Government felt the need to levy a cess of 50 paise per litre on diesel and petrol. This is not a tax, but it is necessary to augment finacial resources in the current situation. The price of diesel and petrol in the state is still lower compared to the neighbouring states as shown.

Sl.                                                                                   litre       No.       State                        Petrol        Diesel        LPG Cylinder                 K.Oil

1.    Mizoram(Aizawl)             49.21            36.12              339.35               13.10
2.    Assam (Guwahati)        52.65         38.21              350.50                    16.00
3.    Manipur (Imphal)          50.15       36.93              366.45                      13.12
4. Meghalaya (Shillong)        50.56       37.13              383.00                     12.35
5.    Nagaland (Kohima)      50.73       37.05              365.96                            12.15