Posted On
3/19/2020
4:02:05 AM
by
ayyLMAO
In December 2015, one would have paid Rs 64.8 for every dollar which due to the slowdown in global economy and flight of capital from India has depreciated to Rs 73.81. That is a sharp 14 per cent increase. This means in rupee terms, India is paying much more for a dollar and as payments for barrels of oil are made in dollar equivalents, it dilutes the benefit of lower crude prices.
The other big reason is higher taxes on oil. Almost half the price of petrol today is accounted for by taxes - Rs 19.98 on excise, and Rs 15.25 in VAT. Add dealer commission of Rs 3.55 and it adds up to nearly Rs 39 per litre. For diesel this figure (VAT+excise+dealer commission) stands at nearly Rs 28.
In fact, in its first term between 2014 and 2019, the government has exploited low oil prices multiple times increasing excise duties a record nine times between November 2014 and January 2016. As a result duty on petrol went up by Rs 11.77 a litre and on diesel by 13.47 a litre. Duty cuts have also happened but only twice. In October 2017, when crude prices were benign at under $50 per barrel, duties were reduced by Rs 2 per litre. Exactly a year later in October 2018, crude prices started inching upwards and breached the $80 mark for the first time in four years. This led to a steep increase in retail prices of petrol and diesel which hit all time highs of Rs 84 on October 4 (petrol) and Rs 75.69 on October 16 (diesel). To soften the blow, the government reduced excise duties again by Rs 1.5 per litre while oil marketing companies were asked to absorb another Rs 1 per litre bringing down retail prices by Rs 2.5 per litre.
Part of that reduction was, however, reversed in the first budget of this government last July, when a Rs 2 per litre cess was imposed on petrol and diesel.
While the benefit of the lower crude prices this time around to consumers has been partial so far, an oil marketing company official said more cuts could be in the offing. Oil prices are revised on a daily basis and any reduction often takes place with a lag. There are also expectations of another round of excise duty cuts given the fact that crude prices are expected to remain subdued for much of next fiscal 2020-21.
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Posted On
3/19/2020
4:02:38 AM
by
ayyLMAO
cont;d
"The international crude oil prices have declined significantly from $63.27 per barrel as on January 6, 2020 to $31.13 per barrel as on March 9, 2020, while petrol prices in India (Delhi) decreased from Rs 75.69 to Rs 70.59 during the same period. However, significant 50 per cent fall in the international crude oil prices has only resulted by a 7 per cent decline in the domestic petrol prices," says D K Aggarwal, president, PHD Chamber of Commerce and Industry. "At this juncture, we suggest a reduction in excise duties and VAT on petroleum, diesel and allied products by at least 25 percent, to bring down the prices of petroleum products, which will be a big relief to the industry, will boost and kick start economic growth, while reviving the spirit in the economy. This reduction in excise and VAT would reduce the prices of petrol and diesel by Rs 9-10 per litre and help lower inflation, boost consumer spending, make Indian industry competitive and boost overall revenue benefiting the government, industry and economy."
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Posted On
3/19/2020
4:30:03 AM
by
Abdul Rahman
Haha..big story..who fooled you like this. What is the result for ordinary people like you and me?? I know you are also against this hike, your Cow-dung head not allowing you to tell it. hahah...shame on you. Seems you are from UP. hahahaa.
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Posted On
3/19/2020
5:46:29 AM
by
Zameer
Mr. Abdul Rahman is right, even I felt the same. But cannot express openly. What to do. Expecting good days ahead.
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Posted On
3/19/2020
6:14:04 AM
by
Zameer
@Zameer (Fake) Dear Beta, you can''t be me in your next 10 lives minimum. Use the name your Abba given to you and then post whatever garbage you want. There is no tax on it. Now start crying & cursing..... That''s what your type is free for and u r good at it.
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Posted On
3/19/2020
10:26:42 AM
by
Zameer
@Abdul rahman: 50%of modi''s inventions are excellent.. but im worried about Shah''s interventions.. people are struggling now, but great days about to come.. hope for the best..
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Posted On
3/21/2020
12:37:47 AM
by
Habib
@Zameer, Shah and the RSS is actually ruling the country..Modi is just a doll to sign the documents like KOBIND.. Showing Modi in front of the People to get the vote from illiterate cultures and after on the back entrance they selling whole country to the corporate like Abani, Ambani and the Oil Companies..
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Posted On
3/21/2020
2:52:57 AM
by
Zameer
Simple logic, before hike I used to fill petrol for Rs1000/-, after the hike also I am paying only 1000/- not 1030/- so logically there is no hike, only a little quantity less compared to before. I hope you understood, cannot explain more simple. Still you don''t get, i cant say anything.
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Posted On
3/21/2020
2:57:07 AM
by
ayyLMAO
Yes Zameer, I agreed with you. Simple way to explain. Thank you so much. Now I can become a Hero in my Whatsapp Group.
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Posted On
3/22/2020
8:48:40 PM
by
Surve ® ™ ©
This hike cannot be justified.
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