News Analysis India

Tag: petrol

  • Not possible to bring petrol, diesel under GST for next 8-10 years: Sushil Modi

    By PTI
    NEW DELHI: BJP leader Sushil Kumar Modi on Wednesday said it is not possible to bring petrol and diesel under the GST regime for the next eight to 10 years as it would cause an annual revenue loss of Rs 2 lakh crore to all states.

    Centre and states collectively collect over Rs 5 lakh crore tax on petroleum products, Modi told the Rajya Sabha while participating in a discussion on the Finance Bill 2021.

    The statement assumes significance in view of the rise in petrol price for the past over one year which even touched Rs 100 per litre in some states.

    In the first reduction in rates in over a year, petrol price on Wednesday was cut by 18 paise per litre and diesel by 17 paise a litre as international oil prices tumbled to the lowest since early February.

    Petrol price was cut to Rs 90.99 a litre in Delhi from Rs 91.17 per litre.

    Diesel now comes for Rs 81.30 a litre in the national capital, down from Rs 81.47 previously.

    Rates have been reduced across the country and vary from state-to-state depending on the local incidence of taxation (VAT).

    This is the first reduction in fuel prices in over a year.

    The prices were last reduced on March 16, 2020.

    “It is not possible to bring petrol and diesel under GST regime in the next eight to 10 years because states would not be ready for an annual revenue loss of Rs 2 lakh crore (collectively by all states),” Modi told the House.

    “If petrol or diesel would be brought under the Goods and Services Tax (GST) regime then how would the loss of Rs 2 lakh crore revenue to states be recovered. The Centre and states together earn over Rs 5 lakh crore from tax on petroleum products,” he said.

    He explained that if petroleum products are brought under the GST, 28 per cent tax would be collected on them as that is the highest slab in the tax regime.

    “Presently, 60 per cent tax is being collected on petroleum products. This would result in shortfall of Rs 2 lakh crore to 2.5 lakh crore (to both Centre and states),” he explained in the House.

    “If we collect 28 per cent tax on petroleum products, then only Rs 14 would be collected (per litre) against Rs 60 at present,” he pointed out.

    “If petrol or diesel price is Rs 100 (per litre) then the tax component is Rs 60 which includes Rs 35 for Centre and Rs 25 for respective states. Besides out of the Rs 35 tax per litre, 42 per cent goes to states,” Modi added.

    He also stated,”It is said that tax collected on petrol, diesel goes into the pocket of government. There is no separate pocket of government. From where the money will come for providing electricity and tap water to all households. The spending of tax collection on welfare of country is being challenged. 

    Reacting to remarks against the GST regime, he said,”Some people also said that this is Gabbar Singh Tax. No state has opposed the tax structure of GST in any GST Council meeting. You can see the proceedings of the council (to verify that),” he said.

    He stressed that only the government under the leadership of Prime Minister Narendra Modi had the guts to implement the GST regime in the country.

  • Bringing petroleum products under GST will be good move: Chief economic advisor Subramanian

    By PTI
    KOLKATA: Chief Economic Advisor K V Subramanian has backed a proposal to bring petroleum products under the ambit of the Goods and Services Tax (GST).

    He, however, said the decision will have to be taken by the GST council.

    “It will be a good move, but the decision rests with the GST Council,” Subramanian said during a recent interaction with FICCI FLO members.

    Petroleum Minister Dharmendra Pradhan had also urged Union Finance Minister Nirmalya Sitharaman to bring petroleum products under the ambit of the GST.

    Continuous rise in fuel prices has burdened the common man and become a political issue in states where assembly elections are due.

    Subramanian also said inflationary pressures are mostly on account of “food inflation”.

  • Nepal caps fuel supply as peddlers from India borders strike it rich

    Express News Service
    PATNA/DEHRADUN: Large-scale smuggling of petrol and diesel has been reported from the Nepal border forcing Nepalese authorities to cap fuel supply. Any vehicle from India in border areas will now be allowed to get only 100 litres of petrol or diesel.

    In north Bihar, demand for petrol from local peddlers has shot up in the wake of a steep rise in fuel prices in India. Mohan Kumar (name changed), a resident of Motihari, said he makes at least five trips a day to and from Nepal via Raxaul on his motorbike to fetch petrol from a station bordering the Nepalese district of Parsa.

    “Per trip, we bring 5 litres of petrol from Nepal at 113 per litre, which is equal to Rs 70.79 in Indian currency, and sell it for Rs 90-95 on the Indian side,” he said. Dozens of locals owning two and four wheelers are engaged in petrol-peddling.

    Shayam Kumar (name changed), a bike mechanic from East Champaran, says he dispatches four of his men — two from Nepal — to fetch petrol thrice daily. “Fuel smuggling is as lucrative as liquor smuggling into dry Bihar. Since there is no legal restriction on refueling Indian vehicles on the Nepal side, we earn at least Rs 2,500 per day.” 

    Sources said petrol smuggling is becoming rampant in Bihar districts that share borders with Nepal such as Kishanganj, Supaul, Araria, Madhubani, Darbhanga, Sitamarhi and East and West Champaran.

    In Uttarakhand, too, people are flocking to Nepal to get fuel tanks of their vehicles filled as prices in the country are increasing every day. Ripudaman Singh Tadagi, a fuel station owner in Tanakpur in Champawat district, said, “As much as 15-20% of our sale has been affected due to people going to Nepal for cheaper fuel.”

    However, Vineet Tomar, district magistrate of Champawat, said, “We have no reports of smuggling. Borders are open and if vehicle owners are purchasing fuel legally, then it is a non-issue.” Interestingly, petroleum products are supplied to Nepal by India.

  • Bengal govt reduces tax by Re 1 per litre on petrol, diesel

    By PTI
    KOLKATA: The West Bengal government on Sunday announced a reduction of tax by Re 1 per litre on petrol and diesel effective from midnight of February 22.

    State Finance Minister Amit Mitra said the move will provide some respite to people stung by burgeoning prices of fuel.

    “The Centre earned Rs 32.90 per litre in taxes from petrol (on February 20), while the state got around Rs 18.46 only. In case of diesel, the central government’s earning was Rs 31.80 per litre as against about Rs 12.77 for the state,” Mitra said.

    He also alleged that the Centre had imposed cess to avoid devolution with states, which is “against the characteristics of federalism”.

    To a question, Mitra said the Union government should reintroduce the planning commission.

    Later, in a tweet, the minister said the tax rebate on fuel will be valid till June 30.

    “To reduce the common man’s burden, the State Government has decided to allow rebate of Re 1 per litre on sales tax payable on sales of petrol and diesel w.e.f. the end of midnight of 22nd February, 2021 till 30th day of June, 2021,” Mitra said.

  • Petrol becomes expensive again today

    Government oil companies have again increased the prices of petrol. Its prices were stable a day earlier. But today again the price of petrol has increased by 10 paise across the country. In Delhi, it became expensive by 10 paise per liter to reach Rs 81.83. However, there was no change in the price of diesel. There has been no change in the price of diesel for the last 26 days. According to information received from IOCL, the price of one liter of petrol in Delhi today is Rs 81.83 per liter. Mumbai is being sold for Rs 88.48 per liter, one liter of petrol in Kolkata at 83.33 and one liter in Chennai for Rs 84.82 per liter. At the same time, if we talk about diesel, today diesel is being sold at Rs 73.56 per liter in Delhi, 77.06 in Kolkata, 80.11 in Mumbai and one liter in Chennai at Rs 78.86 per liter. It remains at its earlier price. Talking about other cities, diesel 73.87 in Noida, 73 in Lucknow. Selling at Rs 77 per liter. Apart from the four metros, petrol is being sold at 82.17 in Noida, 81.32 in Ranchi, Rs 82.07 per liter in Lucknow. Petrol-diesel prices change daily and are updated at 6 am. You can get this information through SMS. Right now, the international fuel market has slowed down. Government-run oil marketing companies – Indian Oil, Bharat Petroleum and Hindustan Petroleum implement any change in prices from 6 am every day. After two days after August 16, Wednesday, August 19 and August 25, the price of petrol had increased for the remaining 10 days. 07 is being sold for Rs. Petrol-diesel prices change daily and are updated at 6 am. You can get this information through SMS. Right now, the international fuel market has slowed down. Government-run oil marketing companies – Indian Oil, Bharat Petroleum and Hindustan Petroleum implement any change in prices from 6 am every day. After two days after August 16, Wednesday, August 19 and August 25, the price of petrol had increased for the remaining 10 days. 07 is being sold for Rs. Petrol-diesel prices change daily and are updated at 6 am. You can get this information through SMS. Right now, the international fuel market has been slow. Government-run oil marketing companies – Indian Oil, Bharat Petroleum and Hindustan Petroleum implement any change in prices from 6 am every day. After two days after August 16, Wednesday, August 19 and August 25, the price of petrol had increased for the remaining 10 days.

  • Article :- Madhy Pradesh-Raajasthaan Vidhaanasabha Aur C.G. Ke Doosare Charan Ke Chunaav Se Pahale Modi Sarakaar Kee Sabase Badee Chinta Huee Door

    At the time of assembly elections in the five provinces that are currently being held, the opposition has particularly raised the issue of rising prices of petrol diesel. On this, Congress President Rahul Gandhi had also demonstrated in Delhi with the leaders of other opposition parties and India joined the bandh.
    Against the increase in petrol and diesel prices in Chhattisgarh, on Tuesday, in the capital, Raipur, the Congress protested by bribing the blindfolder.

    Under the leadership of the city Congress President Vikas Upadhyay, dozens of workers protested by the petrol pump with a plank-poster and blindfolded in the hands. At the same time, the Modi government has been held responsible for the increase in prices. The Congress says that the prices of petrol and diesel are continuously increasing. At the same time, the central government has simplified silence instead of providing relief to the people.

    The biggest concern for the government and the common man since last few months is that the rising prices of petrol and diesel. But the cost of crude oil has got relief from the common man and the government. In October, crude oil has been cheaper by 25 per cent. At the same time, the rupee has strong strength against the US dollar. In such a situation, the government will be able to implement its plans correctly before the general elections and assembly elections. Know what the common man will gain …
    Crude prices have also lowered crude prices in Indian baskets.

    This will reduce the pressure on oil companies. Oil companies will give the consumer the benefit of the reduction in crude prices. It is clear that petrol and diesel will be cheap. According to a report by the Foreign Brokerage House UBS, if crude prices increase by 10 percent, then CPI inflation increases by 25 basis points. In such a situation, if the inflation has come down before the 2019 general elections, then it would be a big factor for the government. Let me tell you that retail inflation (retail) dropped to 3.31% in October.

    This is the lowest in a year. Before this, in September 2017 it was 3.28%. Retail inflation was 3.77 percent in September this year. Due to the low cost of food and beverages, the rate of inflation decreased. In the next slide, why is it cheaper crude oil? Crude prices will be cheaper even in Indian baskets due to the reduction in crude prices. This will reduce the pressure on oil companies. Oil companies will give the consumer the benefit of the reduction in crude prices. It is clear that petrol and diesel will be cheap.

    According to a report by the Foreign Brokerage House UBS, if crude prices increase by 10 percent, then CPI inflation increases by 25 basis points. In such a situation, if the inflation has come down before the 2019 general elections, then it would be a big factor for the government. Let me tell you that retail inflation (retail) dropped to 3.31% in October. This is the lowest in a year. Before this, in September 2017 it was 3.28%. Retail inflation was 3.77 percent in September this year. Due to cheaper food items, the rate of inflation decreased. In the next slide, why did the crude oil-

    Crude prices have also lowered crude prices in Indian baskets. This will reduce the pressure on oil companies. Oil companies will give the consumer the benefit of the reduction in crude prices. It is clear that petrol and diesel will be cheap. According to a report by the Foreign Brokerage House UBS, if crude prices increase by 10 percent, then CPI inflation increases by 25 basis points. In such a situation, if the inflation has come down before the 2019 general elections, then it would be a big factor for the government. Let me tell you that retail inflation (retail) dropped to 3.31% in October.

    This is the lowest in a year. Before this, in September 2017 it was 3.28%. Retail inflation was 3.77 percent in September this year. Due to cheaper food items, the rate of inflation decreased. In the next slide, why did the crude oil-
    Since the big fall in Brent Crude, the rupee has gained momentum. Brent crude has reached $ 65.02 a barrel in today’s trade. At the same time, the rupee dropped to $ 71.99 per dollar from the drop in crude demand and dollar demand, which is the strongest level since September 21, 2018. Experts agree that crude prices will continue to fall further, which will give support to the rupee. In the coming months, the rupee could be up to $ 70 per dollar.

    Since the big fall in Brent Crude, the rupee has gained momentum. Brent crude has reached $ 65.02 a barrel in today’s trade. At the same time, the rupee dropped to $ 71.99 per dollar from the drop in crude demand and dollar demand, which is the strongest level since September 21, 2018. Experts agree that crude prices will continue to fall further, which will give support to the rupee. In the coming months, the rupee could be up to $ 70 per dollar.

    Since the big fall in Brent Crude, the rupee has gained momentum. Brent crude has reached $ 65.02 a barrel in today’s trade. At the same time, the rupee dropped to $ 71.99 per dollar from the drop in crude demand and dollar demand, which is the strongest level since September 21, 2018. Experts agree that crude prices will continue to fall further, which will give support to the rupee. In the coming months, the rupee could be up to $ 70 per dollar.