Can reduce petrol price by ₹25 a litre: Chidambaram

Prices in Delhi have increased by Rs 2.54 since May 14 after a 20-day freeze on petrol prices ahead of Karnataka election results. In the Mumbai market, prices of petrol at Rs 84.70 a litre and diesel at Rs 72.48 were the highest ever.

What this would translate into as costs at the pump is 141p a litre of unleaded petrol and 144p for diesel. Chidambaram had in a series of tweets said that the fall in worldwide oil prices between 2014 and early 2016 helped the government save Rs 15 per litre but the government put an additional Rs 10 on every litre of fuel. "Bonanza to Central government is ₹25 on every litre of petrol". The central government has formed a task force to act over the issue. "The government is involved in this whole process, including the concern (about rise in prices) and also the uncertainty", he said.

Diesel prices, which have already reached unprecedented levels, set new records across India at as high as Rs 72.76 a litre as of May 23.

Why are global crude oil prices on the rise?

But the economic experts say that it is not possible.The Narendra Modi government has a fiscal deficit target of 3.2% for the fiscal year 2018-19. With this petrol price touched Rs 82 and diesel at Rs 74.60 per litre.

As per Indian Oil Corporation's price build-up data for fuels, the total tax component charged from consumers stands at 52 per cent for petrol and 42 per cent for diesel. In addition to it, states have Value-Added Tax the rates of which vary from state to state.

"The long term solution is to bring all the petroleum products under goods and service tax that will rationalise the taxation structure", he added.

What one can be assured of is, in-spite of rising barrel prices during the tenure of the Congress-led government, they had managed a great job in keeping hold of the prices of crude oil in India.

Higher prices are denting popularity of the ruling Bharatiya Janata Party, which face polls in key states later this year and a nationwide election in early 2019.

"Maharashtra got in the four years of this central government what the state couldn't get in the past". Under GST, the maximum tax slab is that of 28 per cent whereas the government is collecting much higher taxes by keeping petrol and diesel out of GST.


Popular
  • 5 things you need to know about the GDPR

    5 things you need to know about the GDPR

    Earlier this month a survey revealed a terrible complacency and lack of preparation among British businesses about GDPR. That said, European Union regulators are clearly going to tread softly on the enforcement front in the short term.
    West Ham hold talks with Zorro over replacing Moyes

    West Ham hold talks with Zorro over replacing Moyes

    We've not arranged a date, not arranged a time. "I speak regularly with the board". "I'd like to think it was David Moyes , I really hope so".
    Trump assails high drug prices, avoids direct hit on industry

    Trump assails high drug prices, avoids direct hit on industry

    The administration's plan also aims to bolster Medicare's prescription drug benefit, known as Part D, to have more ways of negotiating prices with drug makers.
  • Oil to Hit $90 a Barrel: Morgan Stanley

    Oil to Hit $90 a Barrel: Morgan Stanley

    Goldman Sachs, though, said even with a slowdown in demand and soaring USA output, global oil markets would remain tight. In addition, the IEA has cut its oil consumption forecasts as higher prices work to reduce future demand.
    Celtics push LeBron, Cavs into 0-2 hole

    Celtics push LeBron, Cavs into 0-2 hole

    In game one, Morris recorded 21 points and 10 rebounds and the Celtics beat the Cavaliers 108-83, covering as 1-point favorites. The Cavs apparently have an answer for their Game 1 struggles, and it's inserting Tristan Thompson in the starting lineup.
    East Orchard Mesa girl in 'fair' condition after bear attack

    East Orchard Mesa girl in 'fair' condition after bear attack

    The mother said she then heard screaming and went out to find her daughter being dragged by a large black bear. The little girl's condition has been upgraded from serious to fair by the hospital.
  • Amazon's Facial 'Rekognition' Tool Used By Cops Is Cheaper Than Netflix

    Amazon's Facial 'Rekognition' Tool Used By Cops Is Cheaper Than Netflix

    The Washington Post reached out to the county's public information officer, Deputy Jeff Talbot, in the wake of the report. The department uses the service about 20 times per day.
    Arab League chief calls on int'l community to protect Palestinians

    Arab League chief calls on int'l community to protect Palestinians

    Middle East envoy Nickolay Mladenov briefed the Security Council on Tuesday on the latest Gaza violence. Monday was the bloodiest single day for Palestinians since the Gaza conflict in 2014.
    Modi To Visit Russia On May 21 For Informal Summit With Putin

    Modi To Visit Russia On May 21 For Informal Summit With Putin

    There had been some differences over Pakistan and Afghanistan, but it had never threatened the relationship, as per sources. The statement put out by Putin's office says that Modi "will be in Russian Federation on a working visit".
  • Kelly accused of keeping 19-year-old in sexual slavery

    Kelly accused of keeping 19-year-old in sexual slavery

    Rodgers is now suing Kelly for "sexual battery" and " willfully, deliberately and maliciously " infecting her with herpes . Although she didn't feel ready, she eventually submitted to the encounter, which she said he recorded without her consent.
    YouTube launching a new music streaming service on May 22

    YouTube launching a new music streaming service on May 22

    Like other music streaming platforms, YouTube Music is going to be released as a standalone mobile app and a desktop music player. YouTube Music has a comprehensive search function too, that you can use to find songs even if you don't know the name or artist.
    Massive OnePlus 6 leak reveals price and official images

    Massive OnePlus 6 leak reveals price and official images

    Moreover, they can also refer friends to it and the top three scorers on the leaderboard have been promised a free OnePlus 6 . The bottom of the poster comes with May 17, 2018, 10 AM, the launch date of the launch of OnePlus 6 in China.

CONNECT