DAHEJ/GUJARAT: Oil Minister Dharmendra Pradhan on Monday governed out a day-to-day price assessment of petrol and diesel however said the government used to be concerned with pinching gasoline costs and is working on a long-term answer.
He asked state governments to tax petrol and diesel within a "reasonable and responsible" band and now not proceed to reap bonanza from rising oil costs.
"There is no review of daily price mechanism," he said after an event to mark receipt of first LNG shipment from Russia beneath a long-term contract.
Daily revision in petrol and diesel costs, which used to be presented in mid-June final year, had are available in for grievance after charges had been hiked on a regular basis final month in keeping with firming world oil charges. It used to be speculated that the long-term answer being labored out by means of the government to deal with the volatility might contain assessment of the day-to-day price assessment mechanism.
Pradhan said gasoline costs have started to say no all over the 5 days however the charges proceed to "pinch".
After hitting all-time high of Rs 78.43 a litre for petrol and Rs 69.31 for diesel on May 29, charges have marginally fallen all over the following days on softening in world oil costs and rupee strengthening in opposition to the US greenback.
Petrol price has dropped by means of 47 paisa a litre and diesel by means of 34 paisa. This compares to Rs 3.64 a litre hike in petrol and Rs 3.24 a litre hike in diesel charges in Delhi within the fortnight after state-owned oil companies ended a 19-day pre-Karnataka poll hiatus to resume day-to-day price revision on May 14.
Petrol in Delhi these days costs Rs 77.96 and diesel by means of Rs 68.97. Prices in Delhi are the bottom among all metros and maximum state capitals due to decrease gross sales tax or VAT.
"We are thinking of a long-term solution (to price volatility). We are concerned about prices," he said. "Government of India is taking a holistic view."
Asked about CPM-ruled Kerala taking the lead in cutting gross sales tax or VAT on petrol and diesel by means of Re 1, the minister said he had welcomed the state govt's transfer however the problem should now not be politicised as in November final year any other states had cut VAT.
State governments, he said, should cut gross sales tax, which because of their being ad valorem in nature leads to upward push in revenues of the state governments when costs upward push. Excise duty, charged by means of the Centre, on the other hand is fastened and does now not change with change in retail price.
"We cannot push states but only appeal to them," he said.
He attacked the previous UPA govt for "mismanagement" of the oil financial system between 2010 and 2014 that had left for the prevailing govt repayments of oil bonds issued to grease corporations for subsidising gasoline.
"We are concerned about plight of the common man," he said.
"I have already categorically stated (on) this issue several times. The present oil price hike is due to three main factors. Hike in the international price of crude, fluctuation in the dollar and Indian currency ratio, and some of the tax issues are also there," he informed reporters here.?
He, however, did not elaborate at the answer or the holistic technique being labored out.
The govt had raised excise duty on petrol by means of Rs 11.77 a litre and that on diesel by means of 13.47 a litre in nine instalments between November 2014 and January 2016 to shore up budget as global oil costs fell, however then cut the tax just once in October final year by means of Rs 2 a litre.
The govt had in June final year junked a 15-year old follow of revising charges every fortnight and presented day-to-day revisions which labored well except for periods in an instant preceding an election.
State-owned Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had been in April 2002 given freedom to revise charges of petrol and diesel on 1st and 16th of every month in accordance with reasonable charge of benchmark world petroleum product costs and rupee-US greenback charges within the preceding fortnight.
The revisions endured until just earlier than the general elections in 2004 when oil corporations went sluggish and after the Congress-led UPA got here to energy all the procedure used to be reviewed as the world oil costs started shifting up. Rates at refinery gate had been revised on fortnightly basis however now not the entire desired hike used to be handed directly to the consumers and that building up now not handed on transformed right into a subsidy.
The UPA govt after all freed petrol price in June 2010 and the diesel charges had been decontrolled by means of the present BJP govt in November 2014.
The central govt levies Rs 19.48 excise duty on a litre of petrol and Rs 15.33 on diesel. State gross sales tax or VAT varies from state to state. Unlike excise duty, VAT is ad valorem and leads to higher revenues for the state when charges transfer up.
In Delhi, VAT on petrol used to be Rs 15.84 a litre, and Rs nine.68 on diesel in April. Today, it is Rs 16.57 on petrol and Rs 10.15 a litre on diesel.
Every rupee cut in excise duty on petrol and diesel will lead to a income lack of Rs 13,000 crore.
He asked state governments to tax petrol and diesel within a "reasonable and responsible" band and now not proceed to reap bonanza from rising oil costs.
"There is no review of daily price mechanism," he said after an event to mark receipt of first LNG shipment from Russia beneath a long-term contract.
Daily revision in petrol and diesel costs, which used to be presented in mid-June final year, had are available in for grievance after charges had been hiked on a regular basis final month in keeping with firming world oil charges. It used to be speculated that the long-term answer being labored out by means of the government to deal with the volatility might contain assessment of the day-to-day price assessment mechanism.
Pradhan said gasoline costs have started to say no all over the 5 days however the charges proceed to "pinch".
After hitting all-time high of Rs 78.43 a litre for petrol and Rs 69.31 for diesel on May 29, charges have marginally fallen all over the following days on softening in world oil costs and rupee strengthening in opposition to the US greenback.
Petrol price has dropped by means of 47 paisa a litre and diesel by means of 34 paisa. This compares to Rs 3.64 a litre hike in petrol and Rs 3.24 a litre hike in diesel charges in Delhi within the fortnight after state-owned oil companies ended a 19-day pre-Karnataka poll hiatus to resume day-to-day price revision on May 14.
Petrol in Delhi these days costs Rs 77.96 and diesel by means of Rs 68.97. Prices in Delhi are the bottom among all metros and maximum state capitals due to decrease gross sales tax or VAT.
"We are thinking of a long-term solution (to price volatility). We are concerned about prices," he said. "Government of India is taking a holistic view."
Asked about CPM-ruled Kerala taking the lead in cutting gross sales tax or VAT on petrol and diesel by means of Re 1, the minister said he had welcomed the state govt's transfer however the problem should now not be politicised as in November final year any other states had cut VAT.
State governments, he said, should cut gross sales tax, which because of their being ad valorem in nature leads to upward push in revenues of the state governments when costs upward push. Excise duty, charged by means of the Centre, on the other hand is fastened and does now not change with change in retail price.
"We cannot push states but only appeal to them," he said.
He attacked the previous UPA govt for "mismanagement" of the oil financial system between 2010 and 2014 that had left for the prevailing govt repayments of oil bonds issued to grease corporations for subsidising gasoline.
"We are concerned about plight of the common man," he said.
"I have already categorically stated (on) this issue several times. The present oil price hike is due to three main factors. Hike in the international price of crude, fluctuation in the dollar and Indian currency ratio, and some of the tax issues are also there," he informed reporters here.?
He, however, did not elaborate at the answer or the holistic technique being labored out.
The govt had raised excise duty on petrol by means of Rs 11.77 a litre and that on diesel by means of 13.47 a litre in nine instalments between November 2014 and January 2016 to shore up budget as global oil costs fell, however then cut the tax just once in October final year by means of Rs 2 a litre.
The govt had in June final year junked a 15-year old follow of revising charges every fortnight and presented day-to-day revisions which labored well except for periods in an instant preceding an election.
State-owned Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had been in April 2002 given freedom to revise charges of petrol and diesel on 1st and 16th of every month in accordance with reasonable charge of benchmark world petroleum product costs and rupee-US greenback charges within the preceding fortnight.
The revisions endured until just earlier than the general elections in 2004 when oil corporations went sluggish and after the Congress-led UPA got here to energy all the procedure used to be reviewed as the world oil costs started shifting up. Rates at refinery gate had been revised on fortnightly basis however now not the entire desired hike used to be handed directly to the consumers and that building up now not handed on transformed right into a subsidy.
The UPA govt after all freed petrol price in June 2010 and the diesel charges had been decontrolled by means of the present BJP govt in November 2014.
The central govt levies Rs 19.48 excise duty on a litre of petrol and Rs 15.33 on diesel. State gross sales tax or VAT varies from state to state. Unlike excise duty, VAT is ad valorem and leads to higher revenues for the state when charges transfer up.
In Delhi, VAT on petrol used to be Rs 15.84 a litre, and Rs nine.68 on diesel in April. Today, it is Rs 16.57 on petrol and Rs 10.15 a litre on diesel.
Every rupee cut in excise duty on petrol and diesel will lead to a income lack of Rs 13,000 crore.
No relief from daily fuel price revision, rules oil minister
![No relief from daily fuel price revision, rules oil minister]()
Reviewed by Kailash
on
June 04, 2018
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