Can reducing cess levies ease high fuel prices?
3 years, 5 months ago

Can reducing cess levies ease high fuel prices?

The Hindu  

The story so far: Ratings agency ICRA recently postulated that the government had room to cut cess levies on retail prices of petrol and diesel, thereby easing prices. Would a reduction in fuel cesses affect the government’s ability to pay interest and principal on oil bonds issued to public oil marketing companies as compensation for subsidies? The agency has estimated that the Centre needs ₹20,000 crore in the current financial year to service the interest and principal related to special oil bonds issued to oil marketing companies in the period 2005-2010. The MPC’s prescription to address this reads: “Excise duties, cess and taxes imposed by the Centre and States need to be adjusted in a coordinated manner to contain input cost pressures emanating from petrol and diesel prices.” Lower pump prices of the transport fuels would ease some pressure on retail inflation and thus allow the RBI a little more elbow room to continue to keep the cost of borrowings lower.

Inflation Oil Prices Interest Price Crore Centre Rbi Petrol Diesel Litre Icra Fuel Cess Cess Levies  litre  levies  fuel  cess  price  diesel  inflation  high  petrol  ease  oil  prices  crore  interest  reducing

History of this topic

Congress asks the government why it can’t pass on the benefit of lower crude prices to consumer
1 year, 9 months ago

Congress asks the government why it can’t pass on the benefit of lower crude prices to consumer

The Hindu  

Attacking the government over prices of petrol and diesel, the Congress on Wednesday asked why the Narendra Modi government has not passed on the benefit of reduction in international crude oil prices to consumers. Addressing a press conference, Congress spokesperson Gourav Vallabh also asked besides the public sector refineries, which private refineries benefited from cheaper Russian crude oil and at …

Retail prices of petrol, diesel may not be cut due to volatile oil market
2 years, 3 months ago

Retail prices of petrol, diesel may not be cut due to volatile oil market

Hindustan Times  

International crude prices may be near a seven-month low but with oil markets still volatile, and state-owned oil refiners having to offset of losses amounting to almost ₹18,500 crore, there’s unlikely to be any change in retail prices of fuel, three people aware of the development said. But the government will review prices of crude oil and petroleum products such …

Centre pares windfall tax on crude, scraps petrol exports levy
2 years, 5 months ago

Centre pares windfall tax on crude, scraps petrol exports levy

The Hindu  

With global oil prices ebbing, the Centre on Wednesday slashed the windfall tax levied on crude petroleum producers, reduced the export tax on Aviation Turbine Fuel and diesel and scrapped the duty on petrol exports. On July 1, the government had levied fresh taxes on the export of petrol, fuel and ATF as well as the domestic sale of crude …

Maharashtra to cut petrol prices by ₹5/ litre and diesel prices by ₹3/litre
2 years, 5 months ago

Maharashtra to cut petrol prices by ₹5/ litre and diesel prices by ₹3/litre

Hindustan Times  

Maharashtra chief minister Eknath Shinde on Thursday announced that the state government had decided to cut value added tax on petrol prices by ₹5 per litre and diesel by ₹3 per litre. Happy to announce that new Government under CM Eknathrao Shinde has decided to reduce Petrol & Diesel prices by ₹5/litre & ₹3/litre respectively,” Fadnavis later tweeted. “A decision …

Data Point | Explaining India’s recent fuel tax cuts
2 years, 6 months ago

Data Point | Explaining India’s recent fuel tax cuts

The Hindu  

It’s a relief that the Union government has cut the fuel tax. A look at the developments that preceded the recent excise duty cuts: After weeks of incremental increases in fuel prices, Union Finance Minister Nirmala Sitharaman announced that the Union government is slashing fuel taxes. Her point was that the cut of Rs 8 per litre came from the …

Inflation May Cool Down By This Much Following Petrol, Diesel Excise Duty Cut; Know Details
2 years, 7 months ago

Inflation May Cool Down By This Much Following Petrol, Diesel Excise Duty Cut; Know Details

News 18  

Inflation, which is currently hovering at an eight-year high of around 7.79 per cent, may cool down going forward due to the lowering of petrol and diesel prices following an excise duty cut by the Centre. Prices are still high and instead of inflation of close to 30 per cent for petrol, it will be around 20 per cent,” according …

India trims taxes on fuel, commodities to fight inflation
2 years, 7 months ago

India trims taxes on fuel, commodities to fight inflation

Al Jazeera  

The steps will lead to a drop in annual revenues due to lower collections, raising concerns on India’s fiscal deficit. Finance Minister Nirmala Sitharaman announced on Saturday a cut in excise duty on petrol by 8 rupees per litre and 6 rupees per litre on diesel. The new tax regime on petrol and diesel could result in the government losing …

Many States reluctant to cut fuel tax
2 years, 7 months ago

Many States reluctant to cut fuel tax

The Hindu  

The Maharashtra government pared its value added tax levies on petrol and diesel by ₹2.08 and ₹1.44 per litre respectively on Sunday, a day after criticising the Centre for offering minimal tax cuts after drastic hikes over its tenure, a sentiment echoed by most Opposition-ruled States. After announcing the excise duty cuts on petrol and diesel of ₹8 and ₹6 …

Excise cuts make fuel cheaper
2 years, 7 months ago

Excise cuts make fuel cheaper

Deccan Chronicle  

New Delhi: Buckling under pressure, the government on Saturday cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre to give relief to consumers battering under high fuel prices that have also pushed inflation to a record high. State-owned fuel retailers will pass on the excise duty cut to …

Govt Reduces Excise Duty on Petrol by Rs 8 per Litre, Diesel by Rs 6; PM Says 'It's Always People First for Us'
2 years, 7 months ago

Govt Reduces Excise Duty on Petrol by Rs 8 per Litre, Diesel by Rs 6; PM Says 'It's Always People First for Us'

News 18  

Under pressure, the central government on Friday cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre, which will lead to a welcome drop in fuel prices. Today’s decisions, especially the one relating to a significant drop in petrol and diesel prices will positively impact various sectors, provide relief …

Inflation impact: The falling mileage of paying for soaring fuel costs
2 years, 7 months ago

Inflation impact: The falling mileage of paying for soaring fuel costs

The Hindu  

“When will the rising petrol prices stop.” This was the question asked by a 26-year-old, who works as a delivery boy with an online app in Madurai. While the common man, in many places, is being forced to depend on public transport or take share-autorickshaw rides, many autorickshaws plying in Coimbatore district have halved the number of trips in the …

The big picture on fuel taxation
2 years, 7 months ago

The big picture on fuel taxation

Hindustan Times  

Prime minister Narendra Modi’s remarks on April 27, where he named some non-Bharatiya Janata Party ruled states and asked them to bring down taxes on petrol-diesel have expectedly created a political controversy. Data from the ministry of petroleum shows that most BJP ruled states seem to have a lower tax on petrol and diesel than the states Mr Modi named …

'Making gains by plundering poor': Congress slams Centre over fuel price hike
2 years, 9 months ago

'Making gains by plundering poor': Congress slams Centre over fuel price hike

Firstpost  

SP MP Jaya Bachchan also attacked the Centre over the hike in fuel prices and said that Akhilesh Yadav had repeatedly said in his campaign that the price is going to increase after the elections New Delhi: Congress on Tuesday slammed the Centre over the hike in petrol and diesel prices, alleging that the government is “making a gain worth …

Why Indian govt may cut tax on petrol, diesel, according to Morgan Stanley
2 years, 9 months ago

Why Indian govt may cut tax on petrol, diesel, according to Morgan Stanley

Live Mint  

Should fuel prices rise sharply due to rise in oil prices, Upasana Chachra of Morgan Stanley in a recent note stated that she expects the Indian government to consider a reduction in fuel excise duty cut to dampen the effect on inflation. However, given that higher oil prices would potentially weigh on growth and tax collection as well, any additional …

Fuel price cut in consonance with national mood
3 years, 1 month ago

Fuel price cut in consonance with national mood

New Indian Express  

Strange, but fuel prices have the duality of bringing fortune and misfortune. Interestingly, despite the surging pump prices, an IMF official recently recommended maintaining existing fuel taxes in India, as a reduction disproportionately benefits higher-income households, making it ‘highly regressive’. Truth is, the chasm between headline and household inflation is wide and the Centre’s pick to go with the latter …

Petrol, diesel price cut across country as Centre cuts excise duty, states reduce VAT. Details
3 years, 1 month ago

Petrol, diesel price cut across country as Centre cuts excise duty, states reduce VAT. Details

India TV News  

After Centre cut excise duty followed by several states reducing VAT, petrol price on Thursday was cut in the range of Rs 5.7 to Rs 6.35 per litre across the country and diesel rates by Rs 11.16 to Rs 12.88 as oil companies passed on a record reduction in excise duty rates to consumers. In Delhi, the reduction in petrol …

BJP Lauds Modi Govt's Cut in Petrol, Diesel Prices
3 years, 1 month ago

BJP Lauds Modi Govt's Cut in Petrol, Diesel Prices

News 18  

The BJP on Wednesday hailed the central government's decision to reduce petrol and diesel prices as Prime Minister Narendra Modi's Diwali gift. "I thank @narendramodi Ji's Gov for reducing Excise Duty on Petrol & Diesel on the eve of Diwali by Rs 5 and Rs 10 respectively from tomorrow. The reduction in excise duty on Petrol & Diesel will also …

Cracking News: On eve of Diwali, Centre cuts excise duty on petrol by Rs 5, diesel Rs 10
3 years, 1 month ago

Cracking News: On eve of Diwali, Centre cuts excise duty on petrol by Rs 5, diesel Rs 10

Firstpost  

The release said that states have also been urged to reduce VAT on petrol and diesel to give relief to consumers In a relief to consumers on the eve of Diwali, the Central Government on Wednesday announced a reduction in excise duty on petrol and diesel by Rs 5 and 10 respectively. Govt of India has taken a significant decision …

Central govt slashes excise duty on petrol and diesel by Rs 5 and Rs 10
3 years, 1 month ago

Central govt slashes excise duty on petrol and diesel by Rs 5 and Rs 10

Op India  

Giving some relief to the common man on the eve of Diwali, the central govt had decided to reduce the excise duty on petrol and diesel, which will lead to a cut in the price of both fuels. The Government of India has announced that the excise duty on petrol will be reduced by Rs 5, and the excise duty …

Petrol price cut by Rs 5, diesel by Rs 10 as govt slashes excise duty
3 years, 1 month ago

Petrol price cut by Rs 5, diesel by Rs 10 as govt slashes excise duty

India Today  

On the eve of Diwali, the Government of India announced a reduction in the excise duty levied on petrol and diesel. The excise duty has been reduced by Rs 5 on petrol and Rs 10 on diesel, effective from Thursday. Read | Fuel that flies you is cheaper than oils that ply you According to a statement by the Centre, …

RBI Gov Shaktikanta Das flags concerns on high petrol taxes, says up to government to take further decision
3 years, 2 months ago

RBI Gov Shaktikanta Das flags concerns on high petrol taxes, says up to government to take further decision

Firstpost  

It can be noted that the government had hiked duties and cesses on fuels like petrol and diesel to record levels after a sharp dip in global crude prices last year which resulted in higher revenue collections Mumbai: After flagging concerns surrounding the inflationary impact of the high indirect taxes on fuels for the second time, RBI Governor Shaktikanta Das …

Surprised that reducing tax on petrol had increased consumption, generating revenue for Centre: P Thiaga Rajan
3 years, 3 months ago

Surprised that reducing tax on petrol had increased consumption, generating revenue for Centre: P Thiaga Rajan

India Today  

The Tamil Nadu government recently reduced tax on petrol, leading to a price cut by Rs 3 and in turn, will increase the Centre's revenue by Rs 1,200 crore annually. "The other mathematical calculation I made is that if the 12% persists and the Indian Government does not reduce its tax, it raises the Union Government's revenue by about Rs …

Centre sensitive to fuel price hike, public to get relief in upcoming month: Union Petroleum Minister
3 years, 4 months ago

Centre sensitive to fuel price hike, public to get relief in upcoming month: Union Petroleum Minister

India TV News  

Union Petroleum Minister Hardeep Singh Puri on Tuesday said that the Central government is sensitive to fuel price rise while also hinting that the public might get relief in the upcoming month. "Central Government is very sensitive to this issue but it is also very sensitive to see the other responsibilities that we have," Puri said while addressing a press …

Respite From Sky-High Petrol, Diesel Prices May be Far, Chief Economic Adviser Says Fuel Tax Cut Unlikely
3 years, 5 months ago

Respite From Sky-High Petrol, Diesel Prices May be Far, Chief Economic Adviser Says Fuel Tax Cut Unlikely

News 18  

Chief Economic Adviser Krishnamurthy Subramanian hinted that the government is unlikely to cut fuel taxes, though petrol and diesel rates are a record high. He said that reducing fuel taxes may not have a significant impact on retail inflation, since the weightage in the index is low. “If you look at the last 6-7 years, anywhere between 35-60 percent of …

Centre can cut fuel cess by ₹4.5 per litre without revenue loss: ICRA
3 years, 5 months ago

Centre can cut fuel cess by ₹4.5 per litre without revenue loss: ICRA

The Hindu  

The Union Government has room to cut the Cess levies on Petrol and Diesel by ₹4.5 per litre without losing revenues, to ease inflationary pressures, rating agency ICRA said on Friday. “Such a cut in the cess rates would offer some relief to household budgets and ease the inflationary pressures related to the rising global crude oil prices,” Ms. Nayar …

Fuel prices at record high: How it is impacting low-income households
3 years, 6 months ago

Fuel prices at record high: How it is impacting low-income households

India Today  

Rizwanudeen, a 37-year-old worker who delivers food in the southern Indian city of Chennai, struggles to pay his rent and loan instalments at the end of every month as he has been hit by the double whammy of higher fuel prices and fewer food orders. Millions of weekly wage earners like Rizwanudeen who make their living ferrying goods or people …

Reserve Bank of India Has A Suggestion to Tackle Rising Petrol, Diesel Price
3 years, 6 months ago

Reserve Bank of India Has A Suggestion to Tackle Rising Petrol, Diesel Price

News 18  

Petrol and diesel prices in India continued to surge. To tackle the rising fuel prices in India, Reserve Bank of India on Friday suggested states and the Union government need to contain the taxes on petrol and diesel. “Excise duties, cess and taxes imposed by the Centre and states need to be adjusted in a coordinated manner to contain input …

Petrol, Diesel Prices Slashed for the Second Time in 6 Days. Check Latest Rates in Metros
3 years, 8 months ago

Petrol, Diesel Prices Slashed for the Second Time in 6 Days. Check Latest Rates in Metros

News 18  

Petrol and diesel prices were slashed on Tuesday for the second time in a week on the back of softening international crude prices. After Tuesday’s rate revision, petrol prices were cut by 19-22 paise while diesel prices were reduced by 21-23 paise across the country. Oil companies had last cut petrol and diesel prices on March 25 by 21 paise …

Need coordinated action between centre, states on tax reduction in fuel prices: RBI Governor
3 years, 9 months ago

Need coordinated action between centre, states on tax reduction in fuel prices: RBI Governor

India TV News  

Reserve Bank of India Governor Shaktikanta Das on Thursday said there is a need for coordinated action between the centre and state governments to reduce taxes on petrol and diesel prices. "There is a need for coordinated action between the centre and the states because there are inherent taxes levied by both," the governor said, adding that calibrated reduction of …

For petrol, diesel price reduction, centre and state need to coordinate says RBI
3 years, 9 months ago

For petrol, diesel price reduction, centre and state need to coordinate says RBI

Hindustan Times  

Reserve Bank of India Governor Shaktikanta Das on Thursday said there is a need for coordinated action between the centre and state governments to reduce taxes on petrol and diesel prices. The governor said both the centre and the state governments have their revenue pressures and they are required to spend high sums of money to enable the country and …

Petrol touches ₹100/litre in some cities, here’s why it’s so costly
3 years, 10 months ago

Petrol touches ₹100/litre in some cities, here’s why it’s so costly

Live Mint  

Fuel prices are on the rise again. Part of the reason is recovering crude oil prices, even as central and state taxes remain a pain point. The elevated taxes kept fuel prices up in India even though crude oil prices had crashed and stayed low for much of 2020. Source: RBI, PPAC The current petrol price break-up in Delhi shows …

Explained: How higher petrol, diesel prices impact you
3 years, 10 months ago

Explained: How higher petrol, diesel prices impact you

India Today  

Petrol and diesel rates in the country have sharply increased after the latest round of fuel price hike by oil marketing companies. Firming of international crude oil rates and extremely high taxes levied on fuel are the key reasons behind the latest round of petrol and diesel price hike in the country. Being the third-largest importer of oil in the …

New cess on petrol and diesel: Will it effect fuel prices
3 years, 10 months ago

New cess on petrol and diesel: Will it effect fuel prices

Op India  

Union Finance Minister Nirmala Sitharaman on Monday announced a new Agriculture Infrastructure and Development Cess of Rs 2.5 per litre on petrol and Rs 4 per litre on diesel in the Union Budget – 2021. Consequent to the imposition of Agriculture Infrastructure and Development Cess on petrol and diesel, Basic excise duty and Special Additional Excise Duty rates have been …

Rahul Gandhi slams Centre over fuel price hike, says Narendra Modi govt only 'busy collecting tax'
3 years, 11 months ago

Rahul Gandhi slams Centre over fuel price hike, says Narendra Modi govt only 'busy collecting tax'

Firstpost  

New Delhi: The Congress on Sunday slammed the Centre over fuel prices touching an “all-time high” and demanded that the excise duty hike affected by the Narendra Modi government during its tenure be immediately rolled back to give relief to the masses. Congress spokesperson Ajay Maken said in Delhi on Sunday the petrol prices have reached an all time high …

Petrol prices continue to scale higher, selling at record ₹84.70/litre in NCR
3 years, 11 months ago

Petrol prices continue to scale higher, selling at record ₹84.70/litre in NCR

Live Mint  

NEW DELHI: Domestic petrol prices have continued to scale higher, with oil marketing companies raising prices again on Thursday. Retail prices of petrol and diesel were raised by 25 paise per litre on Thursday. Petrol prices in Delhi in the new year so far have risen by 99 paise per litre, including today's increase. Higher fuel prices come in the …

Explained: Why fuel prices are rising sharply in India
4 years ago

Explained: Why fuel prices are rising sharply in India

India Today  

A litre of petrol now costs upwards of Rs 90 in some Indian cities like Mumbai and Jaipur. There are two possible explanations — Increase in global crude oil prices and higher fuel taxes levied by the central and state governments. Though petrol and diesel prices have been kept unchanged today, the latest round of hikes — Over Rs 2.3 …

Fuel-tax hikes are putting brakes on India’s recovery
4 years, 5 months ago

Fuel-tax hikes are putting brakes on India’s recovery

Live Mint  

Dilip Lamba, who owns a transport company in Jodhpur in western India, has had more than three-quarters of his fleet of 50 trucks idling for months. Retail prices for diesel -- the lifeblood of India’s economy -- in the capital New Delhi have jumped 30% since the end of April, while gasoline has risen 16%. “While pump prices across the …

Centre insensitive to fuel prices hike: Congress
4 years, 6 months ago

Centre insensitive to fuel prices hike: Congress

The Hindu  

Petrol prices have risen by ₹7 in the last 14 days and this reflects how the Centre is least bothered about people from all sections, who are already suffering from loss of income due to corona-related lockdown, said AICC secretary and former MLA Vamshi Chand Reddy. Speaking to reporters here, he said with the latest hike, petrol prices have touched …

Fleecing fuel users: The Hindu Editorial on hike in petrol, diesel prices
4 years, 6 months ago

Fleecing fuel users: The Hindu Editorial on hike in petrol, diesel prices

The Hindu  

In just 12 straight days, India’s state-owned oil marketing companies have raised the retail prices of petrol and diesel by ₹6.55 and ₹7.04 a litre, respectively. A consumer in Delhi would have ended up spending about 9% more on petrol at an Indian Oil Corporation fuel pump on Thursday while those driving diesel vehicles would have found their fuel costs …

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