Shinde informed reporters after a cabinet meeting at Mantralaya that the decision would entail a burden of Rs 6,000 crore on the state exchequer.
Tag: petrol price
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Excise duty cut on Fuel price: Trinamool says BJP trying to fool masses
By PTI
KOLKATA: TMC on Saturday said the Centre’s decision to slash fuel prices is an attempt to “fool the people” as it had increased the prices by leaps and bounds in the last few months and said West Bengal will follow suit once it lifts the “economic blockade” and releases the funds due to the state.
TMC national spokesperson Sukhendu Sekhar Ray said the Centre has raised the prices of petrol and diesel at least 14 times in the past few months and by leaps and bounds in the past one year.
“Now it is decreasing the prices by Rs 8 and Rs 6 per litre respectively. This is nothing but an attempt to fool the general people. This cut is not enough to bring down inflation”.
To queries, he said West Bengal will slash fuel prices once the Centre cleared its dues amounting to Rs 97,000 crore.
TMC state general secretary Kunal Ghosh said BJP should stop trying to take credit for cutting fuel prices.
“The fuel prices were cur due to immense opposition and public pressure,” he asserted.
The Centre on Saturday cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre to give relief to consumers battered by high fuel prices which has pushed up inflation to a multi-year high.
It also announced subsidy of Rs 200 per cylinder to Ujjwala Yojana beneficiaries for 12 cylinders in a year to help ease some of the burden arising from cooking gas rates rising to record levels.
Ghosh said, “The BJP has been saying for a long time that it has no role to play in fuel price hike. If it can slash the prices today, it could have done it long back. But it didn’t. So it should stop trying to take the credit of it”.
Ray said the Centre is using economic blockade against West Bengal “out of vengeance to stifle the state”.
“It (the Centre) should first lift this economic blockade,” he said.
Last month, West Bengal Chief Minister Mamata Banerjee had said that she will reduce the tax on petroleum products in the state once the central government cleared all the pending dues it owed to the state.
State BJP president Sukanta Majumdar said if the TMC government is pro-people it should reduce fuel prices in the state.
“Last time the Centre slashed prices fuel prices, other BJP ruled states also followed suit by reducing taxes. The Mamata Banerjee government did nothing except abuse the Centre,” Majumdar said.
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Congress attacks PM Narendra Modi for high excise duty, demands roll back
By PTI
NEW DELHI: The Congress on Wednesday hit back at Prime Minister Narendra Modi after he attacked the opposition-ruled states for not reducing the Value Added Tax (VAT) on petrol and diesel, saying the excise duty during UPA government was much lower than what it is under the Modi regime and asked the PM to roll back the hike.
“Modiji, no criticism, no distractions, no Jumlas! Excise Duty during Congress Government – Petrol – Rs 9.48/litre and Diesel – Rs 3.56/litre. Modi Government – Petrol – Rs 27.90/litre and Diesel – Rs 21.80/litre. Please roll back the excise hike of Rs 18.42 in Petrol and Rs 18.24 per litre in Diesel,” Surjewala said on Twitter.
Coming down hard on the Opposition-ruled states, Modi on Wednesday said some states did not reduce VAT on petrol and diesel despite the cut in excise duty by the Centre last November.
He said the states had done “injustice” to the people by not transferring the benefits of the cut to them.
Speaking at an interaction with chief ministers on the emergent COVID-19 situation in the country, Modi said he wanted to flag the challenges being faced by the people due to the war.
“The situation of war which has arisen, has affected the supply chain, and in such an environment, the challenges are increasing day by day,” Modi said in an apparent reference to the Russia-Ukraine conflict.
“This global crisis is bringing many challenges. In such a situation, it has become imperative to further enhance the spirit of cooperative federalism and coordination between the Centre and states,” he said.
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Rahul demands rollback in prices of fuel, leads protest against hike
By PTI
NEW DELHI: Stepping up the attack against the government over steep hike in fuel prices, Congress leader Rahul Gandhi on Thursday said the rise in petrol and diesel prices has been unprecedented and demanded its roll back.
Leading a protest by Congress MPs on the issue at Vijay Chowk here, he said prices of petrol and diesel have risen nine times in the last 10 days, and the common man is the most affected due to this.
Congress MPs from both the Lok Sabha and the Rajya Sabha carrying placards raised slogans against the government and sat on a dharna against the fuel price hike.
Among those present included Leader of Opposition in the Rajya Sabha Mallikarjun Kharge and Congress leader in the Lok Sabha Adhir Ranjan Chowdhury.
“Our demand is that the government should control prices and stop raising petrol and diesel prices,” Gandhi said while noting that the poor and middle class have been worst hit by the hike.
“We can see that petrol and diesel prices are climbing rapidly. The government is making thousands of crores from this. The Congress is protesting across the country against this price rise of petrol and diesel. The government has to stop doing this. It has to ensure that prices do not rise,” he told reporters.
“I had said that when elections will be over, the prices of petrol and diesel will be rising and had asked people to fill up their tanks,” he said.
Gandhi shared on Twitter petrol rates in countries in the Indian sub continent. “Petrol Rate in Indian Rupees (Rs) Afghanistan: 66.99. Pakistan: 62.38. Sri Lanka: 72.96. Bangladesh: 78.53. Bhutan: 86.28. Nepal: 97.05. India: 101.81.
“Don’t ask questions to the ‘Fakir’, who shares knowledge on the camera. Loots India while carrying a bag full of ‘jumlas’ (rhetoric),” Gandhi said in a tweet in Hindi, using hashtag “MehangaiMuktBharat”.
Gandhi said this level of price rise in petrol and diesel has been unprecedented, while accusing the government of stealing the money from the poor and handing it over to industrialists.
The Congress is also launching a week-long countrywide protest “Mehngai Mukt Bharat’ against inflation and rise in fuel prices, under which it will launch a social media campaign as well as beat plates and drums.
It will also garland LPG cylinders across the country at all state and district headquarters to highlight high inflation and rise in fuel prices.
Petrol and diesel prices were on Thursday hiked by 80 paise a litre each, taking the total increase in rates in the last 10 days to Rs 6.40 per litre.
Rates have been increased across the country and vary from state to state depending upon local taxation.
This is the ninth increase in prices since the ending of a four-and-half-month long hiatus in rate revision on March 22.
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Government to take all measures to provide relief to consumers from high fuel prices: Puri
By PTI
NEW DELHI: Amid skyrocketing oil prices, Union Minister Hardeep Singh Puri on Monday said the government will take all required measures in the coming months to ensure that consumers get relief from high fuel prices.
Replying during the Question Hour in the Rajya Sabha, the Minister of Petroleum and Natural Gas also shared that a proposal to bring petroleum products under the Goods and Services Tax was taken up by the GST Council but it “did not find favour”.
India relies on overseas purchases to meet about 85 per cent of its oil requirement, making it one of the most vulnerable in Asia to higher oil prices.
Puri was responding to senior Congress leader Anand Sharma, who said it was agreed upon by the government and the opposition that petroleum products will be eventually brought under GST at the time of its introduction, and sought to know the progress been made in this regard.
“States which are acquiring high revenue from the sale of petrol and petroleum products and if I may also add liquor are normally reluctant to reduce their revenue from these two sources,” said the Petroleum Minister.
However, Puri said “the government will in the coming months also take whatever measures we have to, to make sure that our consumer gets relief to the extent we can”.
Observing that oil prices had shot up from USD 19.56 cents a barrel to USD 130 a barrel at one stage and are currently hovering around USD 109 a barrel, the minister said it is emanating from a war-like situation, apparently referring to the ongoing Russia-Ukraine conflict.
“But within that whatever space we have, vigour space, margin of persuasion, we should continue to exercise that in the interest of the Indian citizen and the consumer,” Puri told the Upper House.
Though the government has deregulated petrol and diesel prices, rate changes have been in the past put on hold by public sector oil companies, Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), for reasons that appear to be non-commercial.
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Oil price tops USD 87 per barrel but petrol, diesel prices stay unchanged
By PTI
NEW DELHI: International oil prices jumped to the highest level since 2014, topping USD 87 a barrel but domestic petrol and diesel prices remained unchanged for the 74th day in a row – a freeze that may be linked to ensuing assembly elections in states like Uttar Pradesh and Punjab.
Brent – the key global oil benchmark – soared to USD 87.7 per barrel mostly due to rising geopolitical tensions and supply-side disturbances due to Yemen’s Houthi group’s attack on oil facilities in the United Arab Emirates.
Also, global inventories are waning. The attack, some analysts believe, may lead to more hostile behaviour between the two power centres in the Middle East – Iran and Saudi Arabia.
But domestic fuel prices – which are directly linked to international oil prices – have not been revised for over two months now. Petrol costs Rs 95.41 a litre in Delhi and diesel is priced at Rs 86.67.
This price is after accounting for the excise duty cut and a reduction in VAT rate by the state government. Prior to these tax reductions, petrol price had touched an all-time high of Rs 110.04 a litre and diesel came for Rs 98.42.
These rates corresponded to Brent soaring to a peak of USD 86.40 per barrel on October 26, 2021.
Brent was USD 82.74 on November 5, 2021, before it started to fall and touched USD 68.87 a barrel in December. Prices, however, started to rise thereafter and on Tuesday soared to USD 87.7 per barrel – the highest since 2014.
Petrol and diesel prices have been in the past frozen before crucial elections. There was a 19-day price freeze on petrol and diesel ahead of Karnataka polls in May 2018, despite international fuel prices going up by nearly USD 5 per barrel.
However, no sooner were the elections over, oil companies rapidly passed on to customers the desired increase over 16-straight days post-May 14, 2018. Petrol price climbed by Rs 3.8 per litre and diesel by Rs 3.38 per litre after the hike.
Similarly, they had stopped revising fuel prices for almost 14 days ahead of the assembly elections in Gujarat in December 2017.
These companies had also imposed a freeze on petrol and diesel prices between January 16, 2017, and April 1, 2017, when assembly elections in five states Punjab, Goa, Uttarakhand, Uttar Pradesh and Manipur, were held.
During the 2019 general elections, they moderated the revision by not passing on all of the desired increase in rates to consumers, industry sources said.
The rates began to rise a day after the final phase of polling for the Lok Sabha elections ended. The current 74-day hiatus is the second longest since daily fuel price revision was adopted in June 2017. Prior to this, there was a 82-day hiatus in rate revision between March 17, 2020 and June 6, 2020.
The 82-day hiatus in rate revision in 2020 followed the government raising excise duty on petrol and diesel by Rs 3 per litre each to mop up gains arising from falling international rates.
The government on May 6, 2020, again raised excise duties by Rs 10 per litre on petrol and Rs 13 per litre on diesel.
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Symbolic reduction in excise duty on petrol, diesel will not bring down inflation: Rajasthan CM Ashok Gehlot
By PTI
JAIPUR: Saying that a “symbolic” reduction of Rs 5 and Rs 10 per litre in the excise duty on petrol and diesel will not bring down inflation, Rajasthan Chief Minister Ashok Gehlot on Sunday said the Centre should promise to the country that the fuel prices will not be increased in this way in the future.
He also claimed that people know that after the Assembly polls in five states, the prices will start increasing again.
The Centre recently reduced the central excise duty by Rs 5 and Rs 10 per litre on the prices of petrol and diesel respectively.
Subsequently, several states cut the Value-Added Tax (VAT) on fuel rates.
The Congress government in Rajasthan is yet to announce a VAT reduction in the prices of petrol and diesel and is facing flak from the opposition BJP over the issue.
Gehlot said he will hold discussions about reducing the VAT on petrol and diesel in the state at a cabinet meeting on Tuesday and an appropriate decision will be taken.
“We will decide whatever is possible,” he said.
The senior Congress leader said it is for the first time after independence that the country is facing such high inflation.
Blaming the policies of the BJP-led NDA government at the Centre for this, he said the prices of petrol, diesel and LPG cylinders kept on increasing continuously and then Rs 5 and Rs 10 per litre were reduced on the petrol and diesel rates, which is insufficient to curb the inflation.
“Our demand is that you (Centre) make a promise to the country that the rates will not be increased in this way in the future, only then the inflation will start coming down,” Gehlot told reporters here.
He said inflation is a big issue in the country and every household is affected.
“Be it the middle class or the poor, living has become difficult. It has become difficult for women to run the kitchen,” the chief minister said, adding that the top priority of the NDA government should be to curb the inflation.
Gehlot was at the Pradesh Congress Committee (PCC) office to pay tributes to former prime minister Jawahar Lal Nehru on his birth anniversary.
He also launched the “Jan Jagran Saptah” (public awareness week), under which various activities including foot marches will be conducted across the state on the issue of inflation, on a call given by Congress president Sonia Gandhi and party leader Rahul Gandhi.
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Cabinet approves ethanol price hike by up to Rs 1.47/litre for blending in petrol
By PTI
NEW DELHI: The government on Wednesday hiked the price of ethanol extracted from sugarcane for blending in petrol by up to Rs 1.47 per litre for 2021-22 marketing year starting December, as part of its target to achieve 20 per cent doping by 2025.
A higher blending of ethanol in petrol will help cut India its oil import bill and also benefit sugar cane farmers as well as sugar mills.
The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, gave its approval for fixing a higher price for ethanol derived from different sugarcane-based raw materials under the Ethanol Blended Petrol (EBP) Programme for Ethanol Supply Year (ESY) 2021-22 starting next month.
Giving details, Information and Broadcasting Minister Anurag Thakur said the price of ethanol extracted from sugarcane juice has been increased to Rs 63.45 per litre from the current Rs 62.65 per litre for the supply year beginning December 2021.
The rate for ethanol from C-heavy molasses is increased to Rs 46.66 per litre from Rs 45.69 per litre currently and that of ethanol from B-heavy to Rs 59.08 per litre from Rs 57.61 per litre.
Oil marketing companies Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), which procure ethanol from sugar mills and distilleries, will also bear the GST and transportation costs on the ethanol procured for doping in petrol.
Thakur said the ethanol blending with petrol has touched 8 per cent in the 2020-21 marketing year (December-November) and is expected to reach 10 per cent next year.
India has plans to increase the blending to 20 per cent by 2025.
The CCEA approval will not only facilitate the continued policy of the government in providing price stability and remunerative prices for ethanol suppliers but will also help in reducing the pending arrears of cane farmers and dependency on crude oil imports, an official release said.
It will also help in savings in foreign exchange and bring benefits to the environment.
The government has also decided that oil PSEs (public sector enterprises) should be given the freedom to decide the pricing for 2G (Second Generation) ethanol, as this would help in setting up advanced biofuel refineries in the country.
Already, oil marketing companies (OMCs) are deciding the grain-based ethanol prices.
“The decision to allow Oil PSEs to decide the price of 2G ethanol would facilitate setting up advanced biofuel refineries in the country.
“All distilleries will be able to take benefit of the scheme, and a large number of them are expected to supply ethanol for the EBP Programme,” the release said.
The government has been implementing Ethanol Blended Petrol (EBP) Programme, wherein OMCs sell petrol blended with ethanol up to 10 per cent.
The programme has been extended to the whole of India except the Union Territories of Andaman Nicobar and Lakshadweep islands with effect from April 1, 2019, to promote the use of alternative and environment-friendly fuels.
The Centre had notified administered price of ethanol since 2014.
For the first time during 2018, the differential price of ethanol-based on raw material utilised for ethanol production was announced by the government.
Ethanol procurement by state-owned OMCs has increased from 38 crore litre in Ethanol Supply Year (ESY) 2013-14 to contracted over 350 crore litre in ongoing ESY 2020-21.
The government said a consistent surplus of sugar production is depressing sugar prices.
Consequently, sugarcane farmers’ dues have increased due to the lower capability of the sugar industry to pay the farmers.
To limit sugar production and increase domestic production of ethanol, the government has taken multiple steps, including allowing diversion of B heavy molasses, sugarcane juice, sugar and sugar syrup for ethanol production.
“Now, as the Fair and Remunerative Price (FRP) of sugarcane and ex-mill price of sugar have undergone changes, there is a need to revise the ex-mill price of ethanol derived from different sugarcane-based raw materials,” the release said while explaining the rationale for the CCEA’s decision.
Further, to kick-start the second generation (2G) ethanol programme (which can be produced from agricultural and forestry residues, like, rice and wheat straw/corn cobs and Stover/bagasse, woody biomass), a few projects are being set up by oil PSEs taking financial assistance from ‘Pradhan Mantri JI-VAN Yojana’.
These projects are likely to start commissioning from ensuing ESY 2021-22, thus a decision on 2G ethanol pricing is desired, the release said.
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Centre should distribute Rs 4 lakh crore raised from hiked oil prices among states: Mamata Banerjee
By PTI
KOLKATA: Claiming that the Centre has raised Rs 4 lakh crore in the recent times from increased fuel prices, West Bengal Chief Minister Mamata Banerjee on Tuesday demanded that the money be equally distributed among the states.
Banerjee, during an Assembly session, alleged that the Union government has slashed excise duty recently on petrol and diesel, with an eye on the upcoming Assembly elections in five states.
“The central government has collected around Rs 4 lakh crore from the taxes levied from selling cooking gas, petrol and diesel at increased prices. Now, they (BJP) want the states to reduce the VAT. Where will the states get their money from? The Centre should distribute that Rs 4 lakh crore equally among the states,” she said while addressing the West Bengal assembly.
The CM further said that the state has been providing several subsidies despite financial constraints.
“Whenever elections are near, they (Centre) bring down the prices. Once that is over, they increase it again. Those lecturing us on oil prices should first answer where the state government will get its money from. The Union government does give us our due funds,” she said, targeting the BJP, which has threatemend to launch a “movement” if the VAT on oil is not reduced.
Banerjee also accused the central government of meting out a step-motherly treatment to Bengal during distribution of vaccines among states. “The number of vaccines doled out to us was much less compared to states such as Uttar Pradesh. We have ensured that not a single vaccine dose gets wasted,” she said.
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Ahead of state polls, Punjab government slashes petrol price by Rs 10
By Express News Service
CHANDIGARH: Ahead of assembly elections early next year, the Congress-led Punjab government on Sunday announced a reduction in the Value Added Tax (VAT) on petrol and diesel in the state, making them cheaper by Rs 10 and Rs 5, respectively, from midnight.
Petrol will now cost Rs 95 per litre in the state instead of Rs 105 while diesel will be sold at Rs 83.75 a litre down from Rs 88.75.
Announcing the decision after a cabinet meeting, Chief Minister Charanjit Singh Channi said Punjab now has the lowest petrol rates in the region (except the Union territory of Chandigarh) and the diesel price is also much lower than in Haryana and Rajasthan.
The government’s decision has brought down the VAT on petrol from 27.27% to 15.15% and on diesel from 17.57% to 10.91%.
This is the first time in last 20 years that the state has slashed petrol and diesel prices. Channi claimed that such a big rate cut was unheard of in the last 70 years. The move will cost the state nearly Rs 6,000 crore.
Taking a dig at the BJP-led government at the Centre, Channi said that it is really unfortunate on the part of its leadership to slash the prices of petrol and diesel by from November 4 thereby cutting down the excise duty, which adversely impacts the income of all states including Punjab, which has 42 per cent share in the excise duty collected by Centre.
In neighbouring Haryana, the government had reduced VAT on petrol and diesel on Thursday, making them cheaper in the BJP-JJP-ruled state by Rs 12 per litre. Prices of petrol and diesel in the state now stand at Rs 95.27 and Rs 86.51, respectively.
“People have been burdened so much in the past years, but we are taking steps to provide relief to them in every sector,” Channi said, pointing at his government’s decisions like reduction in electricity rates.
The chief minister said the new rate of petrol will be Rs 95 per litre and that of diesel would be Rs 83.75 per litre.
According to a list provided by the state government, petrol costs Rs 104.01 in Delhi, Rs 95.29 in Haryana, Rs 95.76 in Himachal Pradesh, Rs 96.13 in Jammu and Kashmir, Rs 116.27 in Rajasthan and Rs 94.21 in Chandigarh.
Similarly, diesel costs Rs 86.71 in Delhi, Rs 86.53 in Haryana, Rs 80.34 in Himachal Pradesh, Rs 80.31 in Jammu and Kashmir, Rs 100.46 in Rajasthan and Rs 80.89 in Chandigarh, it showed.
“People of Punjab may consider it a Diwali gift. We will be giving them more such gifts (major public welfare announcements) in the future.”
“People have been burdened so much in the past years, but we are taking steps to provide relief to the people in every sector,” Channi said, pointing at decisions like reduction in electricity rates taken by his government.
Assembly polls in Punjab are due early next year.
Channi further claimed that after the reduction, the rate of petrol in Punjab will be the lowest among the northern states for the first time in 20 years.
“We are close to UT Chandigarh in rates, but our rates are cheaper by big margins as compared to other states,” he said.
After 20 years, diesel in Punjab will be cheaper than in Haryana, Channi said, claiming that petrol in Punjab is cheaper than Delhi.
Channi also hit out at the BJP-led government at the Centre, alleging that ever since it came to power, the rates of petrol and diesel have been shooting up.
He further alleged that the government at the Centre has “looted” the people of the country.
In the last 18 months, diesel has jumped from Rs 61 per litre to 98.50 a litre, the chief minister said.
Initially, the Centre raised fuel prices by Rs 30 a litre and now has reduced it by Rs 5 and Rs 10 a litre to gain words of appreciation, he claimed.
Further, taking a dig at the BJP-led government at the Centre, Channi said it is really unfortunate on the part of its leadership to slash the prices of petrol and diesel by Rs 5 and Rs 10 per litre respectively from November 4, thereby cutting down the excise duty, which adversely impacts the income of all states, including Punjab which has 42 per cent share in the excise duty collected by the Centre.
Channi also took a dig at the Akalis for their protest against the state government over fuel prices.
Finance Minister Manpreet Singh Badal said after the reduction in tax, the effective VAT on diesel and petrol will be 9.92 per cent and 13.77 per cent respectively.
Later, an official statement, however, said that the rate of VAT on petrol has been reduced from 27.27 per cent (24.79 per cent plus 10 per cent surcharge) to 15.15 per cent (13.77 per cent plus 10 per cent surcharge) and that on diesel from 17.57 per cent (15.93 per cent plus 10 per cent surcharge) to 10.91 per cent (9.92 per cent plus 10 per cent surcharge).
Badal said the decision of lowering VAT would cost Rs 6,000 crore of revenue loss annually to the state.
He also demanded that the Centre should reduce taxes other than excise duty on fuel, referring to additional excise duty, special excise duty, surcharge, cess etc.
Badal claimed that during the past six years, the Modi government has taken away Rs 6 lakh crore of the states’ share.
He further pointed out that lowering of excise duty on fuel by the Centre will result in a revenue loss of Rs 900 crore to the state.
The government of India should not put the burden of its “financial or economic mismanagement” on the states, the minister added.
Badal said states have the responsibility of carrying out several welfare measures for people.
“Education, health, police arrangements, jail arrangements, canals, old age allowance, power, water, and all welfare measures are the responsibility of states. When they usurp states’ share, they are not taking it from states but from the people of India,” he said.
Badal said fuel prices in the country were low despite high crude prices in the international market during the Manmohan Singh-led government at the Centre.
(With PTI Inputs)