Modi govt’s greed for revenue keeps petrol, diesel prices close to all-time high levels

Agencies
December 16, 2020

New Delhi, Dec 16: Oil companies may have provided relief to consumers by keeping the pump prices of petrol and diesel static for the past nine days even on rising global oil prices, but it is the heavy load of taxes that has kept the two auto fuels price closer to all-time high levels now with the pandemic-affected revenue stream preventing the government from considering a duty cut.

Taxes and duties now account for 62.5 per cent of the retail price of petrol and 57.77 per cent of the retail price of diesel in the capital at current level of pump prices.

The taxes component has fallen over the fortnight as global price of petrol and diesel has also risen in past few days. Otherwise taxes were well over 70 per cent of the retail price of petrol till the start of the month.

What the higher level of taxes means is that the bulk of the retail price a common man pays to get fuel is tax and if the government would not have targeted petrol and diesel to raise revenue every time there is a pressing need for it, the fuel prices in India today would have mirrored retail prices prevailing decades ago (in 2003) and closer to what consumers in oil-rich countries in the Gulf pay.

The current state tax (VAT) rate on petrol and diesel has risen to Rs 19.32 and Rs 10.85 per litre, respectively, in Delhi.

Similarly, the Centre's decision in May to raise excise duties on petrol and diesel by Rs 10 and Rs 13 per litre, respectively, had taken up the component of this tax on retail prices by Rs 32.98 on petrol and Rs 31.83 per litre on diesel.

So the total tax component (central and state in Delhi) is Rs 52.30 a litre on petrol and Rs 42.68 on diesel. Compare this with the base price of the two products today and the tax load becomes clearly visible. The base price of petrol currently is a mere Rs 27.37 a litre and diesel is just Rs 28.32 a litre.

The base price was much lower till a fortnight ago meaning that the two products are being heavily milked for revenue at the cost of consumers who are at the receiving end of the pandemic bearing higher prices for both food and fuel.

Together with central and state taxes, freight, and dealers' commission, petrol on Wednesday was priced at Rs 83.71 a litre in Delhi while diesel's current selling price stands at Rs 73.87 a litre.

"Auto fuels comprise 20-30 per cent of revenue of state governments while it forms a significant portion of excise revenue for states. As the fuel is still out of GST raising duties is easier for both the Centre and states that target the product to raise revenue whenever there is an emergency. But high set price of fuel also adds inflationary pressure on the economy that would just not be right at this juncture when the country is fighting the coronavirus outbreak," said an oil sector analyst not willing to be named.

According to analysts Rs 5 per litre increase in retail price of petrol and diesel could add upto 0.5 per cent to retail inflation that stood at high level of 6.94 per cent in November.

After maintaining low levels, global oil prices have now risen expecting a demand pick up after the news of a successful coronavirus vaccine broke. While oil companies had kept retail prices from falling consistently in August, September and October even though global oil prices remained soft, they have regularly raised the retail prices since then to bring the pump prices closer to all-time high levels seen in October 2018.

The retail price rise has been held back for the past nine days even though there is a case for it as crude has crossed $50 a barrel. But, the government has still not shown any inclination to revise the taxes downwards as it was decided earlier to manage extreme volatility. The taxes on the two petroleum products have risen on many more occasions in last few years than a cut in taxes.

Sources said that the government has now indicated that even with higher central duty, there would not be any increase in retail price of petrol and diesel. Oil companies have built enough buffer in past few days by not revising pump prices and jacking up their marketing margins. The high marketing margin with OMCs will prevent further increase in auto fuel prices.

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News Network
November 27,2024

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Mangaluru: Dakshina Kannada MP Captain Brijesh Chowta recently met with Union Minister for Railways Ashwini Vaishnav to discuss urgent concerns regarding the region's railway infrastructure development. Key issues raised during the meeting included the long-pending Mangaluru-Bengaluru connectivity, the Shiradi Ghat stretch, and other vital railway concerns impacting the region.

In addition to discussing these issues, Captain Chowta submitted a letter requesting the Union Minister's intervention and support. The letter emphasized the need to merge Konkan Railway with Indian Railways and called for the doubling of railway tracks between Bengaluru and Mangaluru, which would significantly improve rail connectivity between the state capital and Mangaluru.

Further, Captain Chowta raised concerns about enhancing passenger facilities along the region's rail routes, particularly the need for better services between Subrahmanya and Mangaluru.

To bring more attention to these pressing issues, Captain Chowta took to social media, urging the state government’s support. In a tweet on his official X handle, he requested Chief Minister Siddaramaiah to expedite the resolution of these concerns. “In this direction, I request our Karnataka government led by CM Shri @siddaramaiah to kindly provide the necessary state support for the swift redressal of various concerns pertaining to both Konkan Railways as well as HMRDC to ease movement of both people and cargo in this important stretch between Mangalore and Bangalore,” he posted.

The meeting with the Union Minister was attended by Bengaluru Rural MP Dr. CN Manjunath, Udupi-Chikmagalur MP Kota Srinivas Poojary, and Uttara Karnataka MP Vishweshwara Hegde Kageri, all of whom supported the discussion on enhancing railway infrastructure in the region.

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News Network
November 13,2024

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Beirut: The Israeli army on Tuesday continued to launch attacks against civilians in Lebanon, targeting them in several areas without prior evacuation warnings.

However, 13 airstrikes on Beirut’s southern suburbs in the space of only three hours were preceded by evacuation warnings.

The attacks caused no injuries but resulted in widespread destruction of residential buildings and commercial, medical and educational centers.

The airstrikes in southern Lebanon and Bekaa region, reaching Akkar in Lebanon’s far north, erased any hope of a near-term ceasefire settlement.

The strikes were accompanied by an announcement on Israel’s Channel 14 that “the Israeli army has expanded its operations in southern Lebanon to areas it had not reached since the beginning of the ground operation.”

About 50 days have passed since Israel intensified its hostile operations in Lebanon targeting Hezbollah. The death toll from these confrontations and attacks has passed 3,200, with more than 14,000 wounded.

For the first time, an airstrike targeted a mountainous area between Baalchmay and Aabadiyeh on the road leading to Aley, destroying a building housing displaced people.

The mayor of Baalchmay, Adham Al-Danaf, confirmed that “the airstrike targeted a residential building in the Dhour Aabadiyeh area.”

The initial toll from the Ministry of Health showed “five people killed and two injured.”

The raids that targeted Beirut’s southern suburbs for the first time in the morning, unlike nightly raids before, caused huge destruction. Those who evacuated their homes after Israeli warnings, used their phones to record the collapse of empty buildings in Sfeir, Haret Hreik, Bir Al-Abed, Mrayjeh, Laylaki and Hadath.

Israeli warplanes also targeted Tyre, where a strike on a building killed three people and injured many others, while a raid on Tefahta killed a man identified as Kifah Khalil and his family.

Attacks were widespread, with Yater and Zebqine subject to artillery shelling, a civilian being killed in Hermel, and further attacks on Bouday and an area between the towns of Srifa and Arsoun.

A raid on the town of Siddiqin killed two people and injured several others, while an attack on the Mechref farm led to one fatality and multiple injuries.

The search for those missing after an Israeli raid on the town of Ain Yaacoub in Akkar, in the northernmost part of Lebanon, continued until dawn.

During the operation, 14 bodies were retrieved, identified as those of residents displaced from the town of Arabsalim in the Iqlim Al-Tuffah area of the south, along with members of a Syrian family, a mother and three of her children. Additionally, there were 10 people in critical condition.

The targeted residence belongs to a Lebanese citizen, Hussein Hashim, who is reported to be a member of the Syrian Social Nationalist Party.

An airstrike on the town of Saksakiyeh in the Sidon region on Monday night resulted in yet another tragedy.

It appeared that the intended target was the Shoumer family, who just days before lost Hussein Amin Shoumer and his two sisters in a drone strike near Al-Awali River.

Israeli army spokesperson Avichay Adraee issued additional evacuation warnings for towns in the southern region along the Litani River, which, according to estimates from the mayors, are currently 90 percent uninhabited.

In the meantime, Hezbollah announced its continued efforts to “combat the intrusions of Israeli forces and to strike military installations and towns in the north.”

Hezbollah said in a statement that it confronted “an Israeli Hermes 450 drone in the airspace of Nabatieh and forced it to leave Lebanese airspace.”

The party also announced that it targeted “Kfar Blum settlement with a rocket salvo.”

On the Israeli side, air raid sirens sounded in areas of Upper and Western Galilee and in the town of Kiryat Shmona and its surroundings.

The Israeli army confirmed that “a drone exploded in Nesher, east of Haifa, without activating the air raid sirens,” and that “a drone launched from Lebanon crashed into a school in Gesher HaZiv, north of Nahariya.”

Israel’s Channel 13 reported the Israeli military’s assessment regarding Hezbollah’s military strength, claiming that the group currently possesses approximately 100 precision missiles, thousands of artillery shells, and hundreds of rockets. Additionally, it was highlighted that “there are around 200 Lebanese towns that remain unvisited.”

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News Network
November 16,2024

Mangaluru: The Kavoor police in Mangaluru, Karnataka, have arrested three individuals from Kerala in connection with two separate cybercrime cases, including one involving extortion under the guise of a "digital arrest."

City Commissioner of Police Anupam Agrawal reported that one of the arrested individuals, Nisar, a resident of Ernakulam district, posed as a CBI officer. He allegedly threatened the complainant with arrest and extorted Rs 68 lakh. A case has been filed under sections 66 (C) and 66 (D) of the IT Act, and sections 308 (2) and 381 (4) of BNS.

In another case, the Kavoor police arrested two men, Sahil K P of Thiruvannur, Kozhikode, and Muhammad Nashath of Mappila Koyilandy, Kerala, in connection with a share trade fraud. The accused are alleged to have deceived the complainant by promising substantial profits from an investment in the stock market. Trusting the fraudsters, the complainant invested Rs 90 lakh, which was subsequently lost. A case has been registered under sections 66 (C) and 66 (D) of the IT Act, and sections 318 (4) and 3 (5) of BNS.

The accused were arrested in Koyilandi and presented before the court. The operation was carried out under the guidance of City Police Commissioner Anupam Agrawal, led by Mangaluru North Sub-Division ACP Srikanth K, Kavoor Inspector Raghavendra Byndoor, Kavoor PSI Mallikarjuna Biradara, and staff members Ramanna Shetty, Bhuvaneshwari, Rajappa Kashibai, Praveen N, and Malatesh. 

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