Petrol, diesel prices up in 7 states after adjustment of taxes
Quotes

Petrol, diesel prices up in 7 states after adjustment of taxes

Last Updated: Wednesday, July 25, 2012, 23:42
 
 Comment 1
 
Petrol, diesel prices up in 7 states after adjustment of taxes
New Delhi: Petrol and diesel prices were on Wednesday hiked in seven states like West Bengal and Maharasthra and that of domestic LPG in six states as state-owned oil firms recalibrated rates to reflect changes in local levies.

The exercise also resulted in petrol and diesel prices being reduced in 11 states like Karnataka, Goa, Gujarat and Odisha from today. Besides, LPG prices were reduced in 12 states including Gujarat, Tamil Nadu, West Bengal and Odisha.

While there will no change in price of petrol in Delhi, Kolkata would see an increase of Rs 2.52 a litre to Rs 76.13 per liter. Petrol in Mumbai will cost Rs 75.14 from today as against Rs 74.23 per litre till yesterday. But in Chennai, rates have been cut by Rs 0.97 per litre to Rs 72.19.

The changes in prices of petrol are over and above the Rs 0.70 per litre hike that was effected from July 24.

Diesel price in Delhi would remain unchanged at Rs 41.29 per litre but it would be raised by Rs 0.92 per litre to Rs 44.66 in Kolkata and by Rs 0.89 to Rs 45.28 a litre in Mumbai. But in Chennai, rates have been cut by a marginal 12 paisa to Rs 43.83 a litre.

This follows state-run fuel retailers recalibrating surcharge calculations to align with changes made in local levies like entry tax on crude oil, surcharge on sales tax and CST/purchase tax on inter-company sale, by state governments.

Domestic LPG price has been hiked by Rs 19.43 per 14.2-kg cylinder in Assam, by Rs 9.16 in Bihar and Rs 8.72 per bottle in Maharashtra.

LPG will cost Rs 9 more at Rs 423 in Mumbai but there will be no change in rates in Delhi where it is sold at Rs 399.26 per bottle.In Kolkata prices have come down by Rs 4 to Rs 401 and in Chennai by Rs 7 to Rs 386.50

But the rates of domestic cooking gas have been cut by Rs 10.18 per cylinder in Gujarat, by Rs 7.01 in Tamil Nadu, Rs 3.86 in West Bengal and Rs 4.15 in Odisha. It costs Rs 405 in Kolkata and Rs 393.50 in Chennai.

Also, rates of PDS kerosene have been marginally raised in 8 states like Assam, Bihar and Maharashtra but cut in 9 states including Gujarat, Jharkhand, West Bengal and Odisha.


The recalibration of 'state surcharge' has been done under a scheme to compensate fuel retailers for irrecoverable taxes such as entry tax on crude, surcharge on sales tax and CST/purchase tax on inter-company sale of products levied by state governments or local authorities.

The retailers would now review the surcharge regime every quarter, Indian Oil Corp, the nation's largest oil firm, said in a statement.

The government had in January 2003 notified 'The Irrecoverable Taxes Compensation Scheme, 2002' to compensate oil companies for irrecoverable state taxes.

"The scheme provides for compensation to oil marketing and refining companies in respect of irrecoverable state taxes levied by the states/ local authorities such as entry tax on crude, surcharge on sales tax, CST/purchase tax on inter-company sales of petroleum products and any other irrecoverable taxes," it said.

The compensation was set off with the amount being collected by the oil marketing companies through the consumer selling price under the head 'State Surcharge' for the period 2002-03.

The surcharge element in the price build-up ensured that the incidence of any irrecoverable tax of the particular state was recovered from the respective state. "The rate of 'State Surcharge' has remained unchanged since then," it said.

IOC said oil companies had been suffering losses on account of irrecoverable taxes and they have since decided to implement the revised structure of 'state specific cost' to cover the irrecoverable taxes.

"As a result of the said revision, diesel prices shall stand reduced in 11 states. Kerosene prices shall stand reduced in 9 states, LPG prices in 12 states and petrol in 11 states," it said. Similarly, diesel prices shall stand increased in 7 states, kerosene in 8 sates, LPG in 6 and petrol in 7 states.

PTI


First Published: Wednesday, July 25, 2012, 16:48


Comments


comments powered by Disqus
New York Auto Show: 2015 Subaru Outback
New York Auto Show: 2015 Subaru Outback
New York Auto Show: Dodge Hot Cars
New York Auto Show: Dodge Hot Cars
New York Auto Show 2014: Hot Cars
New York Auto Show 2014: Hot Cars
Top 10 Fastest-Emerging Cities
Top 10 Fastest-Emerging Cities
Top Businesswomen in India
Top Businesswomen in India

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved