ibusinesslines.com October 21, 2018

Further cuts in Value-Added Tax on petrol, diesel in Bihar

06 October 2018, 10:24 | Kelvin Horton

Petrol prices cut by Rs 5 in Maharashtra

Fuel Prices: Center Finally Responds To Common Man’s Plight

The price cut would be effective from midnight tonight.

Surjewala said that, on 16 May 2014, the price of crude oil was $107.09 per barrel and the present price of worldwide crude is $86 per barrel, with the average crude price during 52 months of Modi government being $58 per barrel, almost 45 per cent less than the UPA tenure. But the hike in duties had helped the government more than double its excise collections from petro goods from Rs 99,184 crore in 2014-15 to Rs 229,019 crore in 2017-18.

Gandhi's fresh push for bringing petrol and diesel under the purview of GST came a day after the Centre effected a Rs 2.50 per litre cut in their prices. Congress chief spokesperson Randeep Surjewala said the government had evidently panicked at the prospect of losing the assembly polls.

The state and and the Centre's decision collectively resulted in a drop in petrol prices by around Rs 4.37 per litre, against the promised Rs 5 per litre, from 6 AM on Friday in Maharashtra, which had been reeling under the highest fuel prices anywhere in the country.

The central government had incrementally taxed the fuels when the global crude prices had hit an all-time low to generate revenues for the state in order to rein in the fiscal deficit.

Jaitley said he on Wednesday met Oil Minister Dharmendra Pradhan and inter-ministerial consultations continued on Thursday.

The move by the central and state governments will cost the exchequer a significant amount but will provide relief for consumers.

Jaitley said it will be a test for those states whose leaders were only tweeting and indulging in lip sympathy. But analysts said the announcement on Thursday shows there is still a heavy government hand in the industry.

Following this, the Gujarat and Maharashtra Governments announced additional relief of Rs2.5/litre Petrol/Diesel.

Last month, Rajasthan, Karnataka and Andhra Pradesh had reduced Value-Added Tax to cushion consumers for a spate of price increases.

In a significant decision which would give major relief to the people, the Petrol and Diesel prices in Jammu and Kashmir have been slashed by Rs 5 per litre. Diesel prices in Chennai increased by 22 paise to Rs 79.79 a litre and by 20 paise to Rs 77.30 per litre in Kolkata. Of this, IOC's share would be roughly half and the rest split equally between HPCL and BPCL.

Jaitley said the move followed Brent crude oil touching four-year high of United States dollars 86 a barrel Wednesday and interest rates in U.S. reaching seven-year high.

Bihar Deputy Chief Minister Sushil Kumar Modi said his government has not received any letter from Jaitley on the matter, ANI reported.

Nearly half of the fuel price is made up of taxes. When the Congress demitted power, central excise duty on petrol was Rs 9.23 per litre.

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