East Himalaya

Saturday, July 23, 2011

Why Oil Prices are more in India

(This write-up has been taken from the NBPDA News Bulletin, June-July 2011 Volume 2, Issue: 8)

As per the report submitted by the Rangarajan Committee, Central and state Governments are jointly earning revenue from taxes @ 55% on petrol and 34% on diesel.

Central Government does not impose tax on LPG and Kerosene, but state Governments taxes are 11% and 4% respectively.

Revenue earned against taxes on POL products by Central Government is Rs.1,11,779 crore and that by the state Government is Rs.72,081 crore according to 2009-2010 financial year report of Petroleum Planning and Analysis Cell.

As per statement of the Government of India in media, Oil companies are incurring losses in tune of many thousand crores, then on what basis are we negotiating Oil Mines in the Middle East, Africa and Russia.

As per the report of the Government of India, Petroleum Products Pricing and Taxation Committee, taxes on POL products of USA and neighbouring SAARC  countries are as follows:
COUNTRY                            PETROL                                 DIESEL
USA                                        17%                                        19%
Pakistan                                 42%                                        20%
Nepal                                     31%                                        22%
Bangladesh                            24%                                        24%
Sri Lanka                              37%                                        05%

The relief in case of India can only be achieved through-
1)      1) To reduce percentage of tax and withdrawal of CESS, Entry Tax and other taxes by Central and State Governments.
2)      2) To minimise the internal expenses by the oil companies.
3)      3) To maintain fair percentage of profit.
Note from editor:
This is the scenario for the whole of India. For places like North Bengal and Northeast India, the cost of distributing all the above products are very high (the price of reaching the end user). Hence, a subsidized tariff (propose no Central or State taxes) should be offered. Even we need to create community kitchens and distribute free LPG to all forest fringe villagers against confirmation that they would not use firewood or wood for fuel under ant circumstances. This is a very long standing issue which needs to be addressed.

No comments:

Post a Comment