Rationalise taxes for petro products – Committee tells government
The standing committee on petroleum and natural gas, headed by former AP Chief Minister N. Janardan Reddy in its report on the pricing of petroleum products , has proposed that excise duties on petroleum products should be so structured as to ensure that the interests of the consumer are not compromised. Petroleum products in our country are heavily taxed. In Delhi, for instance, of the retail price of petrol, 57% is the tax component. In case of diesel, the tax component is 35%. Panel says the government should try to rationalise tax structure for commonly used fuels. The committee noted that customs, excise and state level duties are about 132% of the basic price of the products in the country. The shares of taxes in the selling price of petrol in Sri Lanka, Thailand and Pakistan are 37%, 24% and 30% respectively.
Meanwhile IOCL the country's largest oil firm has sought a steep hike of Rs 4.54 per litre in diesel and Rs 5.29 per litre in petrol prices in step with the unprecedented rise in global crude oil prices. IOCL has also sought Rs 11.25 per litre increase in kerosene prices and a massive Rs 92 hike in price of LPG cylinder. The company, which posted its first ever net loss of Rs 54.2 crore during the April-June quarter this fiscal, has written to the Petroleum Ministry seeking the required hike.