|
|
|
Govt in position for sharp Rs 8 per litre cut in duty on petrol and diesel
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 05 Mar, 2021
The government may surprise consumers with a sharp cut in excise duty on
petrol and diesel to tame rising prices of auto fuels that have already
reached historic high levels.
Sources privy to the development
said the duty cut may be as high as Rs 8 per litre on the two fuels so
that consumers are provided immediate relief.
Petrol
and diesel prices reached all time high levels last month and since then
have been touching new highs every day. In the month of February
itself, the pump prices of the two auto fuels have increased 14 times
taking up petrol prices by Rs 4.22 per litre to Rs 91.17 a litre and
diesel by Rs 4.34 a litre to Rs 81.47 a litre in Delhi.
"The
revenue projection from the oil sector for FY22 gives the government
room to cut excise duty on petrol and diesel sharply to provide
immediate relief to consumers. This is being examined and a call may be
taken soon," said a government official privy to the development.
According
to a report prepared by ICICI Securities, excise duty on auto fuels is
estimated at Rs 4.35 lakh crore in FY22, if there is no cut in excise
duty on the two products as against the budget estimate of Rs 3.2 lakh
crore.
"Thus, even if excise duty is cut by Rs 8.5 per litre on
or before April 1, the FY22 budget estimate can be met. We are
optimistic of excise duty cut given demand recovery, impending
privatisation and inflation concerns but expect it to be more modest
than Rs 8.5 per litre," the brokerage firm said in its report.
Government
officials agreed that there is room to cut duty but its quantum may be
decided later this month ahead of the start of new financial year.
In
view of the economic disruption caused by the pandemic and need to
raise resources to meet additional expenditure needs for relief
measures, the Centre had raised excise duty on petrol and diesel by Rs
13 and Rs 16 per litre respectively March 2020 and May 2020. This
measure itself would have mobilised an additional Rs 2,25,000 crore
revenue for the Centre in FY21.
With a pick up in demand in
various industrial sectors including consumption of fuels, the
expectation is that revenue would balance out even if there is a duty
cut. However, sources said that government would weigh the decision to
cut excise duty against additional expenses that it may require to
towards another dose of stimulus measure in FY22 and also the need to
meet GST compensation shortfall for states.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|