Tag: petrol price

  • Government ‘sensitive’ towards prices of petroleum products: Union minister Hardeep Singh Puri

    By PTI

    NEW DELHI: The government is “sensitive” towards the prices of petroleum products and is taking all possible steps to address the issue, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said on Wednesday and blamed the Congress for the trend of hike in petrol and diesel prices.

    If state governments want, they can lower the prices of petrol and diesel, as a state did so recently, he said in a press conference at the Delhi BJP office. “We are sensitive towards it and are taking possible steps like doing blending of 10 per cent which we are going to raise to 20 per cent. So, we are taking many steps,” Puri said when asked about the rising prices of petroleum products including cooking gas.

    The Congress government in 2010 deregulated prices of petrol and diesel, meaning there would be a local impact of international rates, he said. “The Centre imposes excise tax on petrol and diesel, while states impose VAT on it. We use this excise money to fund schemes like PM Garib Kalyan Yojna under which 80 crore people received free foodgrains, PM Awas Yojna, Ujjwala scheme,” he said.

    Puri said that the Congress government, before 2014, issued oil bonds of Rs 1.34 lakh crore to control prices of petrol and “passed on their problem to us”. “They emptied the chest. We have to pay Rs 20,000 crore this year for the oil bonds that have a maturity period of 15 years,” Puri said.

    The minister also hit at the Congress saying the figures on oil bonds presented by it were “flawed” and challenged the party to ask states ruled by it to reduce VAT on petrol and diesel.

  • Government’s excise collections on petrol, diesel jumps 88 per cent to Rs 3.35 lakh crore

    By PTI
    NEW DELHI: The union government’s tax collections on petrol and diesel jumped by 88 per cent to Rs 3.35 lakh crore in the year to March 31, after excise duty was raised to a record high, the Lok Sabha was informed on Monday.

    Excise duty on petrol was hiked from Rs 19.98 per litre to Rs 32.9 last year to recoup gain arising from international oil prices plunging to multi-year low as pandemic gulped demand.

    The same on diesel was raised to Rs 31.8 from Rs 15.83 a litre, according to a written reply to a question given by the Minister of State for Petroleum and Natural Gas Rameswar Teli in the Lok Sabha.

    This led to excise collections on petrol and diesel jumping to Rs 3.35 lakh crore in 2020-21 (April 2020 to March 2021), from Rs 1.78 lakh crore a year back, he said.

    Collections would have been higher but for fuel sales falling due to lockdown and other restrictions imposed to curb the spread of the coronavirus pandemic, which muted economic activity and stalled mobility.

    In 2018-19, excise collections on petrol and diesel were Rs 2.13 lakh crore. To a separate question, the Minister of State for Finance Pankaj Chaudhary said excise collections in April-June this year totalled Rs 1.01 lakh crore.

    This number includes excise on not just petrol and diesel but also ATF, natural gas and crude oil. The total excise collection in FY21 was Rs 3.89 lakh crore. “Prices of petrol and diesel are market-determined with effect from June 26, 2010 and October 19, 2014 respectively,” Teli said.

    Since then, the Public Sector Oil Marketing Companies (OMCs) have been taking appropriate decisions on the pricing of petrol and diesel on the basis of international product prices and other market conditions.

    “The OMCs have increased and decreased the prices of petrol and diesel according to changes in international prices and rupee-dollar exchange rate,” he said adding “effective June 16, 2017, daily pricing of petrol and diesel has been implemented in the entire country.”

    The hike in taxes last year did not result in any revision in retail prices as they got adjusted against the reduction that was warranted because of fall in international oil prices.

    But with the demand returning, international oil prices have soared, which have translated to record high petrol and diesel prices across the country.

    More than one-and-a-half dozen states and union territories have petrol at over Rs 100-a-litre mark and diesel is above that level in Rajasthan, Madhya Pradesh and Odisha. Teli said prices vary from state to state due to freight rates and VAT/local levies.

    “The impact of the increase in prices of petrol and diesel can be seen in their impact on inflationary trend measured by Wholesale Price Index (WPI),” he said.

    “The weightage of petrol, diesel and LPG in the WPI index is 1.60 per cent, 3.10 per cent and 0.64 per cent respectively.” He said during the current fiscal 2021-22, petrol price has been increased on 39 occasions and diesel on 36.

    The price of petrol has been cut on one occasion during this period and that of diesel on two occasions. There was no change in the remaining days.

    In the previous 2020-21, petrol price was hiked on 76 occasions and cut on 10 while diesel rates went up 73 times and were reduced on 24 occasions, his reply showed.

  • Uttarakhand government mulls reducing VAT on fuel prices soon

    Express News Service
    DEHRADUN: The Uttarakhand government is mulling to cut the price of petrol and diesel by Rs 2 and Re 1 respectively.  Officials from the state government told The New Indian Express that the prices will be cut by reducing value added tax (VAT) adding that the reduction to be announced soon. 

    “The government is planning this. An announcement may come soon. This is keeping in with next year’s election. There are talks of Uttar Pradesh thinking of doing the same,” said a highly placed official in the state government. 

    Uttarakhand government at present imposes Rs 19 per litre VAT on petrol and Rs 10 per litre of the same on diesel. Petrol in Dehradun costs Rs 97.81 per litre while diesel costs Rs 90.54.

    In many towns of Uttarakhand, prices of petrol are more than the capital city. In Johsimath of Chamoli district, petrol costs Rs 100.38 while in Srinagar ‘Xtra Power’ petrol costs Rs 102.13, in Gopeshwar price sir petrol have reached Rs 99.90. 

    In last 6-and-a-half months, prices of petrol have been increased by Rs 14 and diesel by Rs 16. Increase in petroleum products in the state and countrywide has been a issue which opposition parties jave been raising prominently. 

  • Show big heart, slash taxes on fuel: Maharashtra Deputy CM Ajit Pawar tells Centre

    By PTI
    PUNE: Maharashtra Deputy Chief Minister Ajit Pawar on Friday said the Centre should show a “big heart” and reduce taxes on fuel to provide relief to common citizens who are reeling under high prices of petrol and diesel.

    Pawar, who also holds the finance portfolio, said the Maha Vikas Aghadi (MVA) government has not increased state taxes on petrol and diesel after coming to power in November 2019.

    He was talking to reporters after a review meeting here.

    Speaking about BJP leader Devendra Fadnavis’s claim about the state government levying “tax on tax”, which has led to petrol retailing at around Rs 105 per litre in Maharashtra, Pawar said it was a complete lie.

    “We did not increase any taxes in consecutive budgets. Whatever taxes are there, they are from their (BJP’s) tenure. The Centre takes a big share (of revenue) in the form of taxes, so the Centre should show a big heart and reduce the taxes…it (reducing levies) is not in our hands,” he said.

    Asked why the MVA government is not reducing state-level taxes on fuel, he said in the current situation, when Maharashtra is fighting the COVID-19 pandemic, it has incurred income loss of Rs 1.25 lakh crore.

    “The income of the state in the form of tax has been reduced by Rs 1.25 lakh crore. On the other hand, we have to fund health, food and other sectors in the current times and if we reduce taxes (on fuel), it will impact all these departments,” Pawar said.

  • 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.

  • West Bengal minister cycles 38 km to assembly as petrol price crosses Rs 100 in Kolkata

    By PTI
    KOLKATA: West Bengal’s Labour Minister Becharam Manna cycled a distance of 38 km from his home in the Hooghly district to reach the state assembly in protest as the petrol price crossed the Rs 100-mark in Kolkata.

    Manna, the TMC MLA from Singur who rose to prominence with the agitation against the Tata Nano factory in late 2000s, was accompanied by a few party workers. He left home at 8 am and reached the assembly building in Kolkata around 12.30 pm to attend the ongoing session.

    আজ সিঙ্গুর থেকে কলকাতা বিধানসভা পর্যন্ত পেট্রোল ডিজেলের অস্বাভাবিক মূল্যবৃদ্ধির প্রতিবাদে সাইকেল মিছিল। pic.twitter.com/6x15ZDPj2C
    — Becharam Manna (@mlabecharam) July 7, 2021

    “Steep rise in fuel prices is the latest failure of the Narendra Modi government. Petrol price crossed the century-mark in Kolkata and we are protesting against this,” he told reporters.

    The BJP-led government at the Centre is squeezing the common man in every possible way, while the Trinamool Congress government in the state is trying to give succour to the masses by its social welfare projects, he claimed.

  • Former petroleum minister M Veerappa Moily slams Centre over rising fuel prices

    By PTI
    NEW DELHI: Slamming the Centre over rising fuel prices, former petroleum minister M Veerappa Moily on Saturday said the government is solely responsible for the “illogical price regime” and demanded that petrol and diesel be brought under the purview of the GST regime.

    Moily said India levies one of the highest taxes on petrol and diesel in the world and asserted that this “illogical taxation liability” will have to be halted immediately.

    After the Modi government took over the reins of India in 2014, the pattern of taxation has been such that it has led to petrol prices crossing Rs 100 per litre in several districts in the country, he said in a statement.

    The central excise duty on petrol was Rs 9.28 in 2014 and now has risen up to Rs 31.83 in 2021. In January and February, prices were hiked 10 and 16 times, respectively, he said.

    With the global prices of crude dipping and rupee relatively stable, Indians should have been paying less for fuel, Moily argued.

    In the last 14 months, international oil prices have gone down by around five per cent in dollar terms and in this scenario, the retail prices of petrol and diesel, in rupee terms, should drop at least by five per cent as compared to January last year, instead, they are 20 per cent higher, the Congress leader said.

    Petrol and diesel are not part of the Goods and Services Tax (GST) but attract excise duties from the Centre and value-added tax from states that make them one of the highest-taxed commodities in the country, he noted.

    While the decision of the Unite Progressive Alliance was to reduce imports and go for indigenous production and make India self-sufficient in oil and gas exploration by 2013, the present government has not invested in oil and gas exploration since 2014, he claimed.

    This is the right time to impose GST on petrol and diesel and give up the present adhocism which has contributed to both inflation and also caused irreparable damage to both internal and external trade, Moily alleged.

    The system of subsidy by oil PSUs and the government has been given up after the National Democratic Alliance took over in 2014 and hence, the entire burden falls on the consumer, he said.

    “They are now thinking of selling away the sound PSUs. Oil bonds were issued by the UPA government when fuel prices were regulated. In doing so, the government shielded customers and domestic businesses from the vagaries of the global market for crude oil. By raising capital through bonds, the payments could be made in a deferred manner without causing a major escalation in prices, thus insulating customers,” he said.

    The taxation policy of the present regime is totally flawed and the frequent hike in prices of petrol and diesel has contributed to the distress and sufferings of the people during the present Covid pandernic, Moily said.

    He alleged that the government of India is solely responsible for the illogical price regime and contributing to the miseries of the people in a large way.

    “When inflation is galloping, there are job losses and business is collapsing. It is the duty of the central government to have checks and balances on the fuel prices,” Moily said.

    Many sectors have dipped to the lowest levels in May 2021 and corporate sentiments have further deteriorated, he said.

    The prime minister should wake up and respond to the miseries of the people of this country, Moily added.

    The Congress Friday demonstrated in several parts of the country against the rising fuel prices, during which over 150 members were detained in Gujarat, Delhi and Uttar Pradesh for allegedly violating Covid protocol and protesting without permission.

    The protests, in response to a call given by the Congress leadership, came on a day when another hike — the 22nd since May 4 — pushed the fuel prices across the country to historic heights.

  • Congress should get VAT on fuel reduced in states ruled by it: BJP 

    Ravi Shankar Prasad said Rajasthan, which is ruled by the Congress, is among the states with the highest VAT on fuel price.

  • Congress leaders hold protest against fuel price hike across the country

    By Online Desk
    Congress leaders and party workers on Friday held symbolic protests at petrol pumps in several parts of the country, demanding a complete rollback of fuel price hike.

    Party leaders K C Venugopal and Shakti Singh Gohil reached the Feroz Shah Kotla Stadium petrol pump on a horse cart.

    Venugopal said that under the UPA government, the tax on petrol and diesel stood at Rs 9.20. Now, it is Rs 32.

    “The government should stop imposing excise duty on petrol and diesel. It should come under the purview of Goods and Services Tax. We demand a complete rollback of fuel price hike,” Venugopal, who is the Congress general secretary, said.

    Ajay Maken led a protest against rising fuel prices at petrol pumps in Rajinder Nagar and Janpath.

    Congress leader Rahul Gandhi on Friday tweeted, “GDP crashing, Unemployment soaring, Fuel prices skyrocketing. In how many more ways is #BJPlootingIndia?”

    Petrol and diesel prices were hiked again on Friday by 31 paise per litre and 28 paise per litre, respectively.

    “At least Rs 25 can be reduced in fuel prices by cutting excise duty. Where are those who once used to criticise UPA govt over fuel price hikes? With rising fuel prices, consumer goods are also getting expensive,” said Congress leader Digvijaya Singh in Bhopal, according to ANI.

    Meanwhile, Tamil Nadu Congress president KS Alagiri along with party workers held protests in Kilpauk, Chennai against the rising fuel prices.

    Punjab, Rajasthan, Kerala, Chhattisgarh, Karnataka are among the other states that took out protests in solidarity with the national party’s stand.

    Petrol prices have crossed the Rs 100 per litre mark in Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Rajasthan and Ladakh.

    (Inputs from agencies)

  • Congress leader Priyanka Gandhi slams Centre over rising fuel prices

    By PTI
    NEW DELHI: Congress leader Priyanka Gandhi Vadra Thursday slammed the Centre over the rising fuel prices and alleged that at a time when the people were grappling with an economic crisis, the government was profiteering through taxation on petroleum and diesel.

    Earlier this week, petrol price was hiked by 28 paise per litre and diesel by 27 paise, according to a price notification of state-owned fuel retailers. The hike — the 21st since May 4 — took fuel prices across the country to historic highs.

    Attacking the Centre over the rising fuel prices, Priyanak Gandhi said in a Facebook post, “When the country was facing a disaster, people were grappling with an economic crisis, then the government earned Rs 2.5 lakh crore through taxation on petrol and diesel.”

    What did the common people get, she asked. Comparing the prices over a year, Priyanka Gandhi said that on June 6, 2020, petrol was at Rs 71 and diesel Rs 69, while on June 6, 2021, petrol was at Rs 95, diesel was Rs 85.