Andhra Pradesh Government Announces Reduction in Petrol, Diesel Prices by Rs 2
12 September, 2018, 23:15
Though AP and Rajasthan governments' decisions put a psychological pressure on KCR to take a similar decision on petroleum prices, the Telangana chief minister is unmoved in this direction, leading to criticism from the opposition.
"The increase in petrol and diesel prices is likely to give States a windfall gain of around ₹22,700 crore over and above the budget estimates for the current fiscal".
Charting the decline in worldwide prices of oil and hike in excise duties, the petitioner said that August 16, 2013 onwards when global oil prices started declining, the government increased its excise duties /taxes from Rs. 22.16 per litre to Rs. 35.77 per litre as on 21.05.2018 for petrol and from Rs. 9.65 per litre to Rs. 25.32 per litre for diesel, while cost of crude oil was $111 per barrel on 16.08.2013 and it came to $80 per barrel on 21.05.2018. The excise duty on petrol per litre was Rs 9.48 in 2014, increasing to Rs 19.48 by 2018.
Petrol and diesel prices set new records on Sunday as they continued their upward march on fall in rupee and surge in global crude oil rates. Petrol price has now crossed Rs 89 a litre in Maharashtra.
Andhra Pradesh offered some relief, while Karnataka promised to consider a cut.
The state had slashed Value-Added Tax on prices of petrol and diesel by Rs 2 and Re 1 respectively in October. In Mumbai and Thane, the Maharashtra government charges a VAT/sales tax at 39.12 per cent on petrol, and 24.78 per cent on diesel.
CM Chandrababu Naidu announced cut-off in petrol and diesel prices by Rs 2 in Andhra Pradesh, after Vasundhara Raje in Rajasthan on the day nationwide shutdown called by oppositions. It stated the largest gain would be in Maharashtra to the tune of Rs 33.89 billion followed by Gujarat at Rs 28.42 billion. "Though many States are having a revenue surplus, they use the surplus revenue to finance capital expenditure and interest obligations, " the report said.
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