Monday, 12 November, 2018

States may get ₹22,700 cr. from oil price rise: SBI report

Fuel prices touched a new high on Sunday on the back of continuing rise in global oil prices Fuel prices touched a new high on Sunday on the back of continuing rise in global oil prices
Nellie Chapman | 12 September, 2018, 23:17

"While crude prices are plummeting in worldwide markets, the increase of fuel prices in India is disheartening".

The continuing plunge in the rupee, coupled with the rising crude oil prices, will give the states a windfall in tax revenues to the tune of Rs 227 billion over and above the budget estimates for the current financial year, says a report. The Chief Minister condemned the statement of Union Petroleum Minister Dharmendra Pradhan that petrol prices had increased because of the increase in crude oil prices in the worldwide market and increase in Value-Added Tax by state governments.

In Mumbai, the price of petrol is Rs 88.26 while the price of diesel is Rs 77.47.

On the 15th day of consecutive hikes, petrol prices increased on Tuesday by Rs 0.14 and diesel by Rs 0.15, from 6 a.m, barely two days before the state's biggest 10-day Ganeshotsav festival begins. It is believed that that states such as Maharashtra, Madhya Pradesh, Punjab, Tamil Nadu, Andhra Pradesh, Rajasthan and Karnataka have the privilege to cut petrol prices by at least Rs 3 from their existing rates and Rs 2.5 on diesel.

Telangana chief minister K Chandrasekhar Rao has dissolved the state assembly and is going for early elections in November/December, while his Andhra Pradesh counterpart N Chandrababu Naidu wants to continue in power till the completion of his full term.

Ghosh sees the largest revenue gain for Maharashtra (Rs 3,389 crore), followed by Gujarat (Rs 2,842 crore). Petrol price has now crossed Rs 89 a litre in Maharashtra. Diesel prices per litre were at Rs 72.83 in Delhi, Rs 75.68 in Kolkata, Rs 77.32 in Mumbai and Rs 76.98 in Chennai.

The VAT on petrol has been reduced from 30 to 26 per cent and from 22 to 18 per cent on diesel, Rajasthan Chief Minister Raje announced at a public gathering in Rawatsar in Hanumangarh district on Sunday. "The problem with the states is that even as many have a revenue surplus, they are using the surplus revenue to finance capital expenditure and interest obligations", it said.