6 non-BJP dominated states haven’t lowered VAT on petroleum merchandise: Govt

By PTI

NEW DELHI: Six non-BJP dominated states — West Bengal, Tamil Nadu, Andhra Pradesh, Telengana, Kerala and Jharkhand — haven’t lowered the VAT on petroleum merchandise, resulting in larger costs of petrol and diesel there, Petroleum Minister Hardeep Singh Puri stated on Thursday.

Puri stated in Lok Sabha that the central authorities has lowered excise obligation on petroleum merchandise and another states, following cues, and lowered their Value Added Tax (VAT).

Six states — West Bengal, Tamil Nadu, Andhra Pradesh, Telengana, Kerala and Jharkhand — haven’t lowered the VAT, he stated, amidst vocal protests by the opposition members.

The minister stated, at present the petrol worth in India is among the lowest.

He stated the oil advertising firms collectively suffered losses of Rs 27,276 crore as a consequence of excessive costs of crude in worldwide markets. “I suggest MPs from the opposition impress upon their state governments to reduce the VAT so that they can also join the celebrations,” he stated.

Puri stated India imports greater than 85 per cent of its crude oil necessities.

Therefore, the costs of petrol and diesel within the nation are linked to their respective costs within the worldwide market.

He stated the retail costs of petrol and diesel relying on varied components like crude oil buy worth, trade charge, delivery prices, inland freight, refinery margin, seller fee, central taxes, state VAT and different price parts.

While the typical worth of the Indian basket of Crude oil elevated by 102 per cent (from USD 43.34 to USD 87.55) between November 2020 and November 2022, the retail costs of Petrol and Diesel have elevated in India by solely 18.95 per cent and 26.5 per cent throughout this era respectively.

The minister stated costs of petrol and diesel haven’t been elevated by public sector Oil Marketing Companies (OMCs) since April 6, 2022, regardless of record-high worldwide costs.

“As a result, against the combined ‘Profit Before Tax’ of Rs 28,360 Crore in H1 of the financial year 2021-22, the three OMCs IOCL, BPCL and HPCL have booked a combined loss of Rs 27,276 Crore in H1 of the current financial year 2022-23,” he stated.

Puri stated to insulate Indian customers from the affect of excessive worldwide crude oil costs, the central authorities lowered the central excise obligation twice on November 21, 2021, and May 22, 2022, effecting a cumulative discount of Rs 13 and Rs 16 per litre for petrol and diesel respectively, which was absolutely handed on to the customers.

Following these reductions in central excise obligation, a few of the States and UTs additionally lowered Value Added Tax (VAT) charges on petrol and diesel.

The minister stated India imports greater than 60 per cent of its home LPG consumption.

The worth of LPG within the nation is predicated on the Saudi Contract Price (SPC), the benchmark for the worldwide worth of LPG.

Saudi CP rose from 236 USD /MT in April 2020 to 952 USD /MT in April 2022 and continues to prevail at elevated ranges at present.

However, he stated, the federal government continues to modulate the efficient worth to customers for home LPG.

Public Sector Oil Marketing Companies have suffered enormous losses on the sale of home LPG and to compensate for these losses, the federal government has not too long ago authorized a one-time compensation of Rs 22000 crore to OMCs.

Unsatisfied with the minister’s reply, members belonging to Congress, DMK, TMC and NCP staged a walkout of the home.

NEW DELHI: Six non-BJP dominated states — West Bengal, Tamil Nadu, Andhra Pradesh, Telengana, Kerala and Jharkhand — haven’t lowered the VAT on petroleum merchandise, resulting in larger costs of petrol and diesel there, Petroleum Minister Hardeep Singh Puri stated on Thursday.

Puri stated in Lok Sabha that the central authorities has lowered excise obligation on petroleum merchandise and another states, following cues, and lowered their Value Added Tax (VAT).

Six states — West Bengal, Tamil Nadu, Andhra Pradesh, Telengana, Kerala and Jharkhand — haven’t lowered the VAT, he stated, amidst vocal protests by the opposition members.

The minister stated, at present the petrol worth in India is among the lowest.

He stated the oil advertising firms collectively suffered losses of Rs 27,276 crore as a consequence of excessive costs of crude in worldwide markets. “I suggest MPs from the opposition impress upon their state governments to reduce the VAT so that they can also join the celebrations,” he stated.

Puri stated India imports greater than 85 per cent of its crude oil necessities.

Therefore, the costs of petrol and diesel within the nation are linked to their respective costs within the worldwide market.

He stated the retail costs of petrol and diesel relying on varied components like crude oil buy worth, trade charge, delivery prices, inland freight, refinery margin, seller fee, central taxes, state VAT and different price parts.

While the typical worth of the Indian basket of Crude oil elevated by 102 per cent (from USD 43.34 to USD 87.55) between November 2020 and November 2022, the retail costs of Petrol and Diesel have elevated in India by solely 18.95 per cent and 26.5 per cent throughout this era respectively.

The minister stated costs of petrol and diesel haven’t been elevated by public sector Oil Marketing Companies (OMCs) since April 6, 2022, regardless of record-high worldwide costs.

“As a result, against the combined ‘Profit Before Tax’ of Rs 28,360 Crore in H1 of the financial year 2021-22, the three OMCs IOCL, BPCL and HPCL have booked a combined loss of Rs 27,276 Crore in H1 of the current financial year 2022-23,” he stated.

Puri stated to insulate Indian customers from the affect of excessive worldwide crude oil costs, the central authorities lowered the central excise obligation twice on November 21, 2021, and May 22, 2022, effecting a cumulative discount of Rs 13 and Rs 16 per litre for petrol and diesel respectively, which was absolutely handed on to the customers.

Following these reductions in central excise obligation, a few of the States and UTs additionally lowered Value Added Tax (VAT) charges on petrol and diesel.

The minister stated India imports greater than 60 per cent of its home LPG consumption.

The worth of LPG within the nation is predicated on the Saudi Contract Price (SPC), the benchmark for the worldwide worth of LPG.

Saudi CP rose from 236 USD /MT in April 2020 to 952 USD /MT in April 2022 and continues to prevail at elevated ranges at present.

However, he stated, the federal government continues to modulate the efficient worth to customers for home LPG.

Public Sector Oil Marketing Companies have suffered enormous losses on the sale of home LPG and to compensate for these losses, the federal government has not too long ago authorized a one-time compensation of Rs 22000 crore to OMCs.

Unsatisfied with the minister’s reply, members belonging to Congress, DMK, TMC and NCP staged a walkout of the home.