Thursday, August 5, 2021
Home Business Soaring fuel prices to sharpen House panel focus on taxes - Times...

Soaring fuel prices to sharpen House panel focus on taxes – Times of India


NEW DELHI: Soaring petrol and diesel prices are likely to sharpen focus on high fuel taxes when the parliamentary standing committee on petroleum examines the pricing policy on Thursday.
Petrol is selling for more than Rs 100 in seven states and nearing the mark in others. Diesel has hit a century in Sri Ganganagar district of Rajasthan and ruling around Rs 95 a litre in other states.
The government blames a 27% increase in India’s crude purchase cost, from an average of $55/barrel in January to $72.12 on Tuesday, for the record pump prices. Crude is indeed a factor. But petrol and diesel prices are set according to their international prices and the rupee-dollar exchange rate. The taxes make all the difference for consumers at the pump.
Consider: The dealer price of petrol in Delhi, considered the reference market, has risen by Rs 7.49 from Rs 28.50 a litre in January to Rs 35.99. But the pump price has risen by Rs 12.70 a litre to Rs 96.66 on Wednesday. The dealer price of diesel has gone up by Rs 6.12 a litre from Rs 29.53 in January to Rs 36.65 at present. But the retail price has risen by Rs 13.41 to Rs 87.41 during this period.
This is happening because the Centre and states raised taxes sharply between March and May last year when oil prices collapsed due to the pandemic. Excise duty on petrol was raised by Rs 13, or 65%, from Rs 19.98 to Rs 32.98 a litre. Excise on diesel was jacked up by Rs 16, or 79%, from Rs 15.83 to Rs 28.35.
Excise duty accounts for 39% and 32%, respectively, of the current retail price of petrol and diesel in Delhi. VAT accounts for about 22% in Delhi and more in other states such as Rajasthan, Madhya Pradesh and Maharashtra.
Oil minister Dharmendra Pradhan on had on Sunday admitted the high prices were “problematic” for the people but said the government was saving resources for funding the fight against Covid-19 and welfare schemes.
The RBI too has sounded alarm over high fuel prices since they stoke inflation and suggested both the Centre and states should work on ways to reduce taxes.





Source link

RELATED ARTICLES

3 Reasons to Implement the Organic and White-hat SEO Optimization Techniques

The SEO optimization techniques are being implemented by a large number of businesses and advertisers to attract online visitors to their professional websites. Most...

Factors You Must Know About Minimum Amount Due In Credit Card

The purchase of some costly items has made it easy for us with the use of credit cards. But the card owners...

Decorate Your Fireplace With The Best Wood Logs For Sale

The fireplace is one of the primary focal points of holiday celebrations and get-togethers. You must buy the firewood in Sydney that’s...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Read these three books to master the art of money management

The three non-fiction books listed below have all the necessary information to turn you into a money management pro. You can find...

3 Reasons to Implement the Organic and White-hat SEO Optimization Techniques

The SEO optimization techniques are being implemented by a large number of businesses and advertisers to attract online visitors to their professional websites. Most...

Factors You Must Know About Minimum Amount Due In Credit Card

The purchase of some costly items has made it easy for us with the use of credit cards. But the card owners...

Decorate Your Fireplace With The Best Wood Logs For Sale

The fireplace is one of the primary focal points of holiday celebrations and get-togethers. You must buy the firewood in Sydney that’s...

Recent Comments