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Petroleum ministry suggests halving of excise duty on LPG
New Delhi, Oct 10: Petroleum ministry has suggested halving of excise duty on domestic Cooking Gas (LPG) and kerosene to offset any hike in domestic prices following the recent spurt in global crude oil prices.
New Delhi, Oct 10: Petroleum ministry has suggested halving of excise duty on domestic Cooking Gas (LPG) and kerosene to offset any hike in domestic prices following the
recent spurt in global crude oil prices.
Oil ministry has suggested that excise duty on LPG be brought down from 16 per cent to pre-budget levels of 8 per cent to avoid Rs 45 per cylinder increase in domestic price of LPG, highly placed sources said here.
Without slashing of excise duty on kerosene to 8 per
cent, public distribution system (PDS) consumers would have to
pay between Rs 1.50-2 per litre more.
Petroleum minister Ram Naik is likely to meet Jaswant Singh with the proposal for reduction in duty on LPG and kerosene besides seeking a two per cent cut in excise duty on petrol and one per cent in diesel, sources said.
Naik wants duty on petrol to be brought down from 30 per cent to 28 per cent and that on diesel from 14 per cent to 13 per cent as per the revenue neutral structure evolved after the dismantling of the administered pricing mechanism (apm). Petroleum minister, who had held one round of discussions on the issue last month, would build a case for duty cut on the plea that the loss of revenue on cut in excise duty on petrol and diesel would be offset by the increased customs revenue on crude oil from rise in import price, they said.
On cut in duty on LPG and kerosene, sources said Naik is likely to point out that budget had fixed subsidy on LPG and kerosene at Rs 4495 crore for 2002-03 but with the recent spurt in international crude oil prices, the actual subsidy bill works out to around Rs 6,000 crore. Bureau Report
Petroleum minister Ram Naik is likely to meet Jaswant Singh with the proposal for reduction in duty on LPG and kerosene besides seeking a two per cent cut in excise duty on petrol and one per cent in diesel, sources said.
Naik wants duty on petrol to be brought down from 30 per cent to 28 per cent and that on diesel from 14 per cent to 13 per cent as per the revenue neutral structure evolved after the dismantling of the administered pricing mechanism (apm). Petroleum minister, who had held one round of discussions on the issue last month, would build a case for duty cut on the plea that the loss of revenue on cut in excise duty on petrol and diesel would be offset by the increased customs revenue on crude oil from rise in import price, they said.
On cut in duty on LPG and kerosene, sources said Naik is likely to point out that budget had fixed subsidy on LPG and kerosene at Rs 4495 crore for 2002-03 but with the recent spurt in international crude oil prices, the actual subsidy bill works out to around Rs 6,000 crore. Bureau Report