News Analysis India

Tag: Fuel prices

  • Amid calls to reduce VAT on petrol and diesel, Gehlot asks Centre to further lower excise on them

    By PTI

    JAIPUR: Refusing to lower the state’s VAT on petrol and diesel in the wake of the Centre cutting the excise on two fuels by Rs 5 and Rs 10 respectively, Rajasthan Chief Minister Ashok Gehlot on Saturday said the Union government should further reduce the excise duty on them.

    The reduction of the central excise will automatically lead to the lowering of the state’s VAT collection, Gehlot argued, amid the Opposition BJP demand to the state government to lower the VAT on two fuels.

    Gehlot made the assertion amid various non-BJP-ruled states refusing to slash the VAT to further lower the fuel prices in the wake of the Centre reducing its excise duty on petrol and diesel with various BJP-ruled states too slashing the VAT on them.

    Gehlot argued that the state governments levy VAT on the revenue collected by the Central government in the form of Additional Excise Duty, Special Excise Duty and CESS from petrol, diesel and gas.

    “In view of the inflation, the central government should make further reduction due to which the VAT collection of the states will automatically reduce in the same proportion,” he tweeted.

    He said with the Centre’s November 4 decision to reduce the excise duty, the state’s VAT has also automatically been reduced by Rs 1.8 per litre on petrol and Rs 2.6 per litre on diesel which has caused an annual loss of Rs 1,800 crore in revenue collection of the state.

    At the same time, the chief minister urged the Centre to ask oil companies to refrain from increasing the petrol and diesel prices daily.

    “Otherwise, after Deepawali or assembly elections in five states, the oil companies will increase the price and make the benefit of the relief given by the central and state government to zero,” he said.

    Gehlot said the central government has already reduced the share that all the state governments used to get from the Excise Duty.

    Even otherwise, there has been a huge decline in the States’ revenue due to the Covid pandemic, he argued further.

    “About Rs 5,963 crores of GST Compensation of Rajasthan is yet to be paid by the central government,” he added.

  • Trinamool Congress, BJP spar over fuel tax

    By PTI

    KOLKATA: The TMC on Saturday alleged that the BJP was indulging in “cheap politics” over fuel tax, even as the saffron camp said that it “might be forced to organise protests,” if the state government does not slash Value Added Tax (VAT) on petrol and diesel.

    The Centre recently reduced excise duty on petrol and diesel by Rs 5 and Rs 10 respectively, and many states, including Odisha and Bihar, followed suit and cut VAT on the two products.

    West Bengal, however, hasn’t made any similar announcement followed by the state unit of BJP urging the Mamata Banerjee government to take a cue from the Centre and provide relief to people.

    TMC spokesperson Kunal Ghosh said, “The BJP is doing cheap politics over fuel prices as its inertia in stemming the skyrocketing prices of petrol, diesel and LPG has been exposed. It has slashed excise duty on petrol and diesel a bit, fine! But that is too little, too less.”

    Stating that the revenue realised from fuel tax by the Centre is far more than that of states, Ghosh further suggested that some parity should be maintained.

    BJP national vice-president Dilip Ghosh, on his part, contended that “we might be forced to go on protest,” if the Mamata Banerjee government did not reduce VAT on fuel.

    Sukanta Majumder, the Bengal president of the saffron camp, also demanded an immediate cut on the tax levied by the state on petrol and diesel.

    “Opposition-ruled states like West Bengal and Delhi among others are not doing their bit. Mind it, the Biplab Deb government in Tripura has substantially reduced VAT. The TMC has been levelling multiple allegations against the Tripura government, but it wouldn’t do its part in Bengal,” he added.

  • Maneka Gandhi urges government to bring down LPG cylinder prices too

    By PTI

    SULTANPUR: Former Union minister and Sultanpur MP Maneka Gandhi on Saturday welcomed the cut in petrol and diesel prices and also called for lowering the LPG cylinders rates.

    Maneka Gandhi made the request to the Union government while touring her parliamentary constituency on a four-day visit.

    “The petrol and diesel prices have come down. The Union government should consider lowering the prices of other things, like gas (LPG cylinder), too to provide relief to the people,” she said during a programme in her constituency.

    The BJP MP made the request days after the union government slashed the excise duty on petrol and diesel by Rs 5 and Rs 10 respectively followed by various BJP-ruled states, too, lowering the VAT on the two fuels in significant relief to the common man.

    While participating in her party’s membership drive program in the Dehli Bazar township of Isauli assembly segment, Gandhi said, “Our efforts will be to win Isauli. Wherever I will go, I will keep making members. There will be 100 programs in 100 days but it does not matter much until we don’t make up our minds.”

  • Bihar slashes VAT rates on fuel after centre’s announcement

    By PTI

    PATNA: The Nitish Kumar government in Bihar on Thursday reduced its VAT rate on petrol and diesel by more than Rs 3 per litre, a day after the Centre slashed excise duty on the products in a bid to provide relief to consumers.

    An announcement to this effect was made by the Chief Minister on his Twitter handle.

    “Following the Centre’s move to reduce petrol and diesel prices, the state government has decided to provide additional relief to people by reducing the VAT rates. The prices of petrol will be lowered further by Rs 3.20 per litre while for diesel it will be Rs 3.90 per litre,” Kumar tweeted.

    The Centre had, on Wednesday, made petrol and diesel cheaper by Rs 5 and Rs 10 per litre respectively, a move which has evoked similar response by many states, mostly the ones ruled by the BJP-led NDA.

  • Government slashes petrol excise duty by Rs 5 and diesel excise duty by Rs 10

    By Online Desk

    On the eve of Diwali, the Government of India announced its decision to reduce fuel prices, Rs 5 on petrol and Rs 10 on diesel.

    The government said these prices will come into effect from Nov 4, Thursday.

    On eve of #Diwali, Government of India announces excise duty reduction on petrol and diesel. Excise duty on Petrol and Diesel to be reduced by Rs 5 and Rs 10 respectively from tomorrow pic.twitter.com/peYP1fA4gO
    — ANI (@ANI) November 3, 2021
    This decision definitely comes as a relief to citizens as fuel prices for a while have been rising constantly on account of the excise tax and VAT imposed by the Union government and state governments.

    ALSO READ: Fuel prices soar by Rs 8 a litre in October

    Earlier today, one litre of petrol breached the Rs 110-mark on Tuesday in the national capital while the same was sold at Rs 115.85 in Mumbai. In a more troublesome news for consumers, especially during the on-going festive season, fuel prices are showing no signs of slowing down after becoming dearer by around Rs 7.50-8.00 a litre in October alone. 

    The rate of 1 litre of petrol was hiked by 35 paise on Tuesday, though the price of diesel remained unchanged. With this fresh hike, seventh in a row, petrol prices in Delhi was at a record high of Rs 110.04 per litre on Tuesday, while diesel was sold at Rs 98.42 per litre.

    Among the four metros, fuel prices are the highest in the financial capital Mumbai, with 1 litre of petrol and diesel costing Rs 115.85 and Rs 106.62, respectively. In Chennai, petrol is at Rs 106.66 per litre, while diesel is available at Rs 102.59. In Kolkata, petrol and diesel are retailing at Rs 110.49 and Rs 101.56 per litre, respectively.

  • UP: Congress MLC asks for ‘chulha’ at govt residence, says wood cheaper than LPG cylinder

    By PTI

    LUCKNOW: A Congress MLC from Uttar Pradesh has asked to be provided with a ‘chulha’ instead of a gas stove at his government residence here citing the high price of LPG cylinders.

    Congress MLC Deepak Singh put forth the demand in a letter to the incharge of the building in which he has been allotted a house, saying there is no chance of getting a respite from the high price of LPG before 2024.

    “Ensure arrangement of ‘chulha’ in the apartment allotted to me and all the three blocks in the multi-storey building in Dalibagh because as compared to the price of a cooking gas cylinder, wood and coal are cheaper,” Singh said.

    ​ALSO READ | Where is Rs 25 lakh crore mopped up from hiked fuel prices?: Rahul Gandhi

    An LPG cylinder worth Rs 975 needs to be refilled twice a month, while the cost of cooking food on a ‘chulha’ will be Rs 500 per month, he claimed.

    Singh claimed that the majority of the legislators living in his building also want this arrangement as there is no chance of getting a respite from the high price of LPG before 2024.

    A 14.2 kg cylinder of subsidised and non-subsidised LPG costs over Rs 900 in Lucknow, according to a price notification of oil companies.

    The Congress party has been attacking the government over the fuel price hike and demanding that the burden on the common man be eased by removing some of the taxes imposed by the central government.

  • Where is Rs 25 lakh crore mopped up from hiked fuel prices?: Rahul Gandhi

    By Express News Service

    KANNUR: The Central government led by Prime Minister Narendra Modi has been looting the common man and exploiting farmers and traders in the country by taking whatever little is left in their pockets, said Congress former president and MP Rahul Gandhi. 

    Inaugurating the Kannur District Congress Committee office on Thursday online, he said even as the crude oil price has come down in the global market, the prices of petrol and diesel are being increased on a daily basis in the country. “The government has collected Rs 25 lakh crore by increasing the prices of fuel,” he said. “Now, the government has the responsibility to tell the people as to where the money thus collected has gone,” Rahul said. 

    The government has not used this money for any welfare programmes. “The only beneficiaries under the Modi regime are the corporates. By looting the common people, Modi has been helping the corporates to get richer. Now, he has taken the decision to hand over the PSUs, which are the assets of this nation, to these cronies,” he said. The government has been running away from holding a discussion regarding this in Parliament. The Congress will start a nationwide agitation against the Modi government’s attempt to sell the PSUs, he added.

    Congress state president K Sudhakaran presided over the function. “To come back from the humiliating defeat suffered in the recent assembly elections, the party needs to have discipline and whoever dares to violate the discipline in the party will be dealt with strictly,” said Sudhakaran. 

    All newly appointed DCC presidents will assume the office on Septmber 5. Once they assume charge, a political workshop will be held for them at the state Congress headquarters in Thiruvananthapuram, said Sudhakaran. All DCC presidents will be asked to work among the public to strengthen the party’s base. All leaders should follow the discipline and work unitedly for the progress of the party in the state, he said. 

    Congress national general secretary (organisation) K C Venugopal, Leader of Opposition V D Satheeshan, Congress state working president and MP Kodikunnil Suresh, AICC secretary P V Mohan, UDF convener M M Hassan, MP Rajmohan Unnithan, Kannur DCC president Satheeshan Pacheni, Kannur DCC president-designate Martin George, Kollam DCC president Bindu Krishna and MLAs Sunny Joseph and Sajeev Joseph spoke. 

  • Fuel prices up due to higher import cost of crude oil: Union minister Narayan Rane

    By PTI

    MUMBAI: Union minister Narayan Rane on Friday claimed that higher import cost of crude oil was the main reason behind the spiralling retail prices of petrol and diesel.

    Replying to questions on rising fuel prices which have touched record levels this year, he told reporters in Ratnagiri district that certain things are not in the government’s hands.

    “The import cost of crude oil has gone up. Hence, we (the central government) have to increase the retail prices of petrol, diesel, LPG. Certain things are not in our hands, because we import it,” the Union MSME minister said.

    According to estimates, India imports over 80 per cent of its oil needs and more than 50 per cent of its gas requirement.

    “I will take up the issue with right persons,” Rane said when asked whether the common man will get any relief from rising fuel prices.

    The minister was in Ratnagiri district of coastal Maharashtra as part of his ‘Jan Ashirwad Yatra’, the BJP’s mass contact programme.

  • PM should hold ‘petrol ki baat’ instead of ‘Mann ki baat’: West Bengal CM Mamata Banerjee

    By PTI
    KOLKATA: West Bengal Chief Minister Mamata Banerjee on Wednesday slammed Prime Minister Narendra Modi for “making a mess of the country’s economy” and urged him to hold ‘petrol and vaccine ki baat’ instead of ‘Mann ki baat’.

    Referring to the proposed Union Cabinet reshuffle, the chief minister, during a press meet here, said the removal of Babul Supriyo from the council of ministers shows that “they (BJP government) have also lost it even before the arrival of their end” in 2024.

    ALSO READ| ​Bengal Budget 2021: State govt grants road tax waiver, stamp duty rebate

    Noting that none of the letters she wrote to the PM evoked any response, Banerjee said that despite appeals for Jagdeep Dhankhar’s removal as governor, nothing was done about it. “The entire economy is in doldrums. Fuel prices are increasing everyday and the Union government is sitting idle. Our prime minister is only busy with his Mann ki Baat. He should instead hold petrol ki baat, diesel ki baat and vaccine ki baat,” she insisted.

    Asked about the possibility of BJP MP John Barla’s induction in the Union ministry, weeks after he demanded a separate union territory for North Bengal, Banerjee said it will reflect the “divisive mindset” of the saffron party. “I won’t comment on ministry reshuffle. Will reshuffle end the woes of the people?” she added.

  • Trinamool Congress leaders slam PM Modi over soaring fuel prices

    By PTI
    KOLKATA: The Trinamool Congress on Sunday slammed Prime Minister Narendra Modi for soaring fuel prices, wondering whether he has “gone into hiding”.

    The ruling party in West Bengal also accused the BJP of working hard to “add to the people’s woes” as the fuel prices hit a “historic high”.

    However, the BJP questioned why the state government is not reducing its duties on petroleum products to bring down the prices.

    “As fuel prices hit a HISTORIC HIGH, @BJP4India govt (government) seems to be working very hard towards adding to the woes of the public.

    Not much has changed from 2020.

    The same old blame game continues while the demands of the people of India are conveniently ignored!,” Trinamool Congress national general secretary and Lok Sabha MP Abhishek Banerjee tweeted.

    Petrol price has crossed the Rs 100-mark per litre in metro cities of Mumbai, Chennai, Bengaluru, Hyderabad and Pune and it is over Rs 99 in Delhi and Kolkata.

    Taking to Twitter, senior state minister Partha Chatterjee said, “Mr @narendramodi has a penchant for drama every time the people of India are in distress!” “Now with the skyrocketing petrol prices, why has he gone into hiding? Preparing for a big lie-laden speech Mr Prime Minister,” the state industry minister alleged.

    Fuel prices differ from state to state depending on the incidence of local taxes such as value-added tax (VAT) and freight charges.

    And for this reason, price of petrol has breached the Rs 100-mark per litre in Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Jammu and Kashmir, Odisha, Tamil Nadu, Kerala, Bihar, Punjab and Ladakh.

    “Around June 2020, I remember petrol prices were being hiked for nearly 17 days at a stretch! Within a year, we’ve crossed Rs 100 in several cities across India.

    Shri @narendramodi kindly get off your high horse & take cognizance of the woes of your people!” Bengal transport minister Firhad Hakim said on the micro-blogging site.

    The Left parties also staged protests in various parts of the state against the rising fuel prices and cooking gas.

    West Bengal BJP leader Samik Bhattacharya said criticism will not solve the problem.

    “Why isn’t the state government reducing its levies? Everyone knows how the Centre is managing the current crisis.

    A joint effort from the central government and the states is required to address the issue,” he said.

    He called for the inclusion of petro products under the GST regime.