Petrol price was today cut by 50 paisa and diesel by 46 paisa a litre, much lower than an anticipated decrease as oil companies left cushion for the government to mop up gains accruing from global oil prices dipping to multi-year lows.
Petrol will cost Rs 59.98 from midnight tonight in Delhi as against Rs 60.48 per litre currently.
Similarly, a litre of diesel will cost Rs 46.09 as compared to Rs 46.55 now, said Indian Oil Corp (IOC), the nation's biggest fuel retailer said.
The rate of basket of crude oil that India buys hit a 11-year low of USD 34.39 per barrel yesterday, but the average for the fortnight which is taken into account for calculating new prices, was USD 4-5 more.
Acting as a counter-balance was the rupee that fell to Rs 66.99 to a US dollar yesterday as against average of Rs 66.21 of second half of November for the previous cut.
That increase in excise duty is to yield an additional revenue of about Rs 3,200 crore to the government during the rest of the current fiscal.
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In the previous four hikes between November 2014 and January 2015, totalling Rs 7.75 per litre on petrol and Rs 6.50 a litre on diesel, it had mopped up about Rs 20,000 crore in additional revenue to meet fiscal deficit targets.
The government had collected Rs 99,184 crore in excise collections from the petroleum sector in 2014-15. This was Rs 33,042 crore in the first quarter of the current fiscal.
Today's cut in prices is the second this month. Oil firms had last cut petrol price by 58 paise per litre and diesel by 25 paise on December 1.
"The current level of international product prices of
petrol and diesel and Rupee-USD exchange rate warrant a decrease in prices, the impact of which is being passed on to the consumers with this price revision," IOC said in a statement.
State-owned fuel retailers -- IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) -- revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight.
"The movement of prices in the international oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes," IOC said.
(Reopens DEL98)
The perception that low crude oil prices benefit consumers may not be entirely true. And here is why?
Almost ₹30 a litre is what a consumer pays to the government — Centre and States — in the form of taxes and levies on the actual retail price of petrol and about ₹15 a litre on diesel. This is excluding the dealer commission on the base price.
Despite earning higher duty and lower crude import bill, the Finance Ministry is not really minting revenues, as its public spending is on the rise.
With the continued decline in international oil prices the Finance Ministry is expected to increase the excise duty on auto fuel for the sixth time since November 2014.
Faced with a shortfall in revenues from other sectors in a still fragile economy, the government has resorted to excise duty hikes. As a result, the average consumer is paying anywhere close to ₹5-10 a litre more for the petrol and diesel he/she buys. In the first seven months of the current fiscal, the Centre’s earning from excise duty on petrol is ₹9,903 crore, nearly 58 per cent more than what it mopped up for the entire fiscal of 2014-15. Excise duty earnings from diesel in April-October 2015-16 are at ₹30,240 crore or 52 per cent more than the figure for the 2014-15 fiscal.
The figures do not take into account the fifth excise duty hike of ₹1.60 a litre on petrol and ₹0.40 a litre on diesel implemented in November 2015.
While the low crude prices have created a cushion for the Finance Ministry for oil subsidy payments, public spending has increased.
The Ministry has sought additional expenditure of ₹56,256 crore in the Second Supplementary Demand for Grants. India imported about 85 per cent of its crude oil or 85.91 million tonnes in April-September 2015 from member countries of the Organisation of Petroleum Exporting Countries (OPEC).
On Tuesday, OPEC Secretary General Abdalla Salem El-Badri said, “Low crude oil prices, a lot of people say, is good for consumers. But, this is not true. What is good for the consumers is a price where you can really invest and something that does not negatively impact the economy of the world. We are a looking for a fair price — not high or low.”
The effects of lack of investments can prove to be a major concern for a country like India.
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Cheaper cost has raised the demand for petrol and diesel by nearly 4.3 million tonnes in April-October 2015 over the same period last year, according to the Petroleum Planning and Analysis Cell. This is a growth of 8.5 per cent.
Domestic refining capacity has not been able to meet the demand and in the same period imports of petrol and diesel more than doubled to 854,000 tonne. Despite weaker global prices of fuel, India still paid 57 per cent more than last year for these imports at ₹3,884 crore.
If the pace of fuel demand sustains, India would need at least two more refineries by 2017. Industry officials say refineries in India are now set up with a minimum capacity of 15 million tonne. While Indian Oil Corporation’s 15-million-tonnes per annum Paradip refinery will go on stream in 2016, there are no other expansions being planned in the immediate future by domestic refiners.
Petrol will cost Rs 59.98 from midnight tonight in Delhi as against Rs 60.48 per litre currently.
Similarly, a litre of diesel will cost Rs 46.09 as compared to Rs 46.55 now, said Indian Oil Corp (IOC), the nation's biggest fuel retailer said.
The rate of basket of crude oil that India buys hit a 11-year low of USD 34.39 per barrel yesterday, but the average for the fortnight which is taken into account for calculating new prices, was USD 4-5 more.
Acting as a counter-balance was the rupee that fell to Rs 66.99 to a US dollar yesterday as against average of Rs 66.21 of second half of November for the previous cut.
That increase in excise duty is to yield an additional revenue of about Rs 3,200 crore to the government during the rest of the current fiscal.
http://music.mycupoftea.cc/ja/users/641747
In the previous four hikes between November 2014 and January 2015, totalling Rs 7.75 per litre on petrol and Rs 6.50 a litre on diesel, it had mopped up about Rs 20,000 crore in additional revenue to meet fiscal deficit targets.
The government had collected Rs 99,184 crore in excise collections from the petroleum sector in 2014-15. This was Rs 33,042 crore in the first quarter of the current fiscal.
Today's cut in prices is the second this month. Oil firms had last cut petrol price by 58 paise per litre and diesel by 25 paise on December 1.
"The current level of international product prices of
petrol and diesel and Rupee-USD exchange rate warrant a decrease in prices, the impact of which is being passed on to the consumers with this price revision," IOC said in a statement.
State-owned fuel retailers -- IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) -- revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight.
"The movement of prices in the international oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes," IOC said.
(Reopens DEL98)
The perception that low crude oil prices benefit consumers may not be entirely true. And here is why?
Almost ₹30 a litre is what a consumer pays to the government — Centre and States — in the form of taxes and levies on the actual retail price of petrol and about ₹15 a litre on diesel. This is excluding the dealer commission on the base price.
Despite earning higher duty and lower crude import bill, the Finance Ministry is not really minting revenues, as its public spending is on the rise.
With the continued decline in international oil prices the Finance Ministry is expected to increase the excise duty on auto fuel for the sixth time since November 2014.
Faced with a shortfall in revenues from other sectors in a still fragile economy, the government has resorted to excise duty hikes. As a result, the average consumer is paying anywhere close to ₹5-10 a litre more for the petrol and diesel he/she buys. In the first seven months of the current fiscal, the Centre’s earning from excise duty on petrol is ₹9,903 crore, nearly 58 per cent more than what it mopped up for the entire fiscal of 2014-15. Excise duty earnings from diesel in April-October 2015-16 are at ₹30,240 crore or 52 per cent more than the figure for the 2014-15 fiscal.
The figures do not take into account the fifth excise duty hike of ₹1.60 a litre on petrol and ₹0.40 a litre on diesel implemented in November 2015.
While the low crude prices have created a cushion for the Finance Ministry for oil subsidy payments, public spending has increased.
The Ministry has sought additional expenditure of ₹56,256 crore in the Second Supplementary Demand for Grants. India imported about 85 per cent of its crude oil or 85.91 million tonnes in April-September 2015 from member countries of the Organisation of Petroleum Exporting Countries (OPEC).
On Tuesday, OPEC Secretary General Abdalla Salem El-Badri said, “Low crude oil prices, a lot of people say, is good for consumers. But, this is not true. What is good for the consumers is a price where you can really invest and something that does not negatively impact the economy of the world. We are a looking for a fair price — not high or low.”
The effects of lack of investments can prove to be a major concern for a country like India.
http://www.trunity.net/profile/backlinksor/
Cheaper cost has raised the demand for petrol and diesel by nearly 4.3 million tonnes in April-October 2015 over the same period last year, according to the Petroleum Planning and Analysis Cell. This is a growth of 8.5 per cent.
Domestic refining capacity has not been able to meet the demand and in the same period imports of petrol and diesel more than doubled to 854,000 tonne. Despite weaker global prices of fuel, India still paid 57 per cent more than last year for these imports at ₹3,884 crore.
If the pace of fuel demand sustains, India would need at least two more refineries by 2017. Industry officials say refineries in India are now set up with a minimum capacity of 15 million tonne. While Indian Oil Corporation’s 15-million-tonnes per annum Paradip refinery will go on stream in 2016, there are no other expansions being planned in the immediate future by domestic refiners.
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