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Oil Min seeks scrapping of kerosene imports by pvt firms
New Delhi, Nov 23: Petroleum Ministry has sought scrapping of kerosene imports by private firms to put an end to its adulteration in diesel.
New Delhi, Nov 23: Petroleum Ministry has sought scrapping of kerosene imports by private firms to put an end to its adulteration in diesel.
The Oil Ministry is working on a letter to the Commerce
Ministry asking it to disallow kerosene imports by so-called
parallel marketing firms and allow kerosene only through state
canalising agency, Indian Oil Corp (IOC), officials said here.
The rationale given is that kerosene, surreptitiously used for spiking in diesel, was eating into sales of diesel even though vehicle population increased in the country.
Overall consumption of diesel fell by 3.7 per cent in the first six months of fiscal 2003-04 but the impact was much worse in coastal areas because it is more lucrative to mix at import locations than moving it in the mainland at a cost.
A pointer to the mixing is the absurd rise in kerosene imports in the first six months to 603,400 tonnes from 319,800 tonnes in April-September 2002. In September alone, imports were 85,200 tonnes against 66,700 tonnes in the same month last year.
Separately, Petroleum Ministry has also suggested an increase in customs and excise duty on kerosene sold in parallel market (not sold through public distribution system) to curb its adulteration in diesel.
The ministry has suggested to the Finance Ministry that customs duty be increased to 25 per cent from 10 per cent currently and a specific excise duty of Rs 1.50 per litre be introduced on kerosene so that the price differential between diesel and parallel kerosene is reduced, thereby becoming a disincentive for adulteration, they said.
The rationale given is that kerosene, surreptitiously used for spiking in diesel, was eating into sales of diesel even though vehicle population increased in the country.
Overall consumption of diesel fell by 3.7 per cent in the first six months of fiscal 2003-04 but the impact was much worse in coastal areas because it is more lucrative to mix at import locations than moving it in the mainland at a cost.
A pointer to the mixing is the absurd rise in kerosene imports in the first six months to 603,400 tonnes from 319,800 tonnes in April-September 2002. In September alone, imports were 85,200 tonnes against 66,700 tonnes in the same month last year.
Separately, Petroleum Ministry has also suggested an increase in customs and excise duty on kerosene sold in parallel market (not sold through public distribution system) to curb its adulteration in diesel.
The ministry has suggested to the Finance Ministry that customs duty be increased to 25 per cent from 10 per cent currently and a specific excise duty of Rs 1.50 per litre be introduced on kerosene so that the price differential between diesel and parallel kerosene is reduced, thereby becoming a disincentive for adulteration, they said.
Bureau Report