National
Market pricing regime in fuels distorted by taxes: Assocham
New Delhi, Sep 17 (IANS) Calling for a cut in the cess on transport fuels, industry chamber Assocham said on Sunday that the consumer is getting restive about a three-year high in the petrol prices and feels the market pricing mechanism is being distorted by tax hikes on petrol and diesel.
“Consumers are getting restive about a three year high in the petrol and diesel prices because they feel the concept of market-determined rates was tampered with by frequent tax hikes when the crude oil prices fell steeply and are ruling at exactly half the level of $107 per barrel in May 2014, even after rising in the last three months,” an Assocham release said here.
“It is true that the crude oil has shot up by about 18 per cent from $45.60 per barrel, taking the pump prices of petrol in Delhi (for instance) to Rs 70.39 per litre, from Rs 65.40 three months ago,” it said.
Acknowledging that the increase in the retail prices is far less than hike in crude oil, Assocham said, however, that “the consumer is not willing to compare the crude prices of $45.60 in June versus $54 per barrel today” but “he/she would confront you with $107 per barrel of crude in May 2014 and the pump price of Rs 71.51 per litre on June 1, 2014.”
“With $107 per barrel, the retail price of auto fuel was Rs 71.51 per litre, then how come it is about the same when the Indian basket of crude is trading at half that level at $53.83 per barrel, the consumers would ask,” the statement said.
If they were solely market determined, retail prices should have been less than Rs 40 a litre, it added.
The Indian basket of imported crude oils gained nearly $3.50 a barrel during last week even as petrol prices in the country touched their highest levels since Prime Minister Narendra Modi assumed office three years ago, official data showed on Monday.
The Indian basket, comprising 73 per cent sour-grade Dubai and Oman crudes, and the balance in sweet-grade Brent, closed trade on the weekend on September 8 at $53.63 per barrel. The oil basket had gained over a dollar on Monday to close at $51.34 for a barrel of 159 litres.
Meanwhile, under the daily revision of fuel prices, petrol in Mumbai on Monday cost Rs 79.41 a litre, breaching the level it last touched in August 2014. Petrol per litre on that day cost Rs 70.30 in Delhi, Rs 73.05 in Kolkata and Rs 72.87 in Chennai.
Petroleum products do not come under the Goods and Services Tax (GST) and prices vary at locations according to state taxes.
Assocham said that even though the pricing regime has been linked to market determined rates, a sharp hike in taxes in the form of excise and sales tax or VAT by the Centre and states have distorted the path of reforms.
“Consumers cannot be faulted because the reforms cannot be one way. If the exchequer got a windfall on drop in crude prices by additional taxes, the same must be reduced commensurately,” Assocham Secretary General D.S Rawat said in the statement.
He said that while the government needs resources for building infrastructure and welfare schemes, over-dependence on petrol and diesel both by the Centre and the states would hamper the economic growth.
“The impact is already showing on the macro numbers. The inflation on account of petrol and diesel, year on year, in August 2017 was in excess of 24 per cent and 20 per cent. This would dent the prospects of interest rates softening by the RBI at a time when the industry needs less expensive funds for investment and servicing over-leveraged balance sheets,” he added.
–IANS
bc/vd
Lucknow: Vishal Singh, a renowned social worker from Lucknow, also known as Foodman, has once again made India proud. He was honored by the Happy Hands Gloves Cooperative Limited Company in Korathai, Thailand, for his work with the Hunger Free World Mission.
The Hunger Free World Mission’s meeting was held in Korathai, Thailand, under Vishal Singh’s leadership. Representatives from several countries, including Mr. Raja Dwivedi (Managing Director of Happy Hands Gloves Limited), Thailand Coordinator Mr. Raja Mishra, and member Mr. Varun Singh, attended the event.
Under Vishal Singh’s leadership, the attendees took a pledge to work together toward creating a hunger-free world.
Speaking on the occasion, Vishal Singh explained that the main goal of the Hunger Free World Mission is social participation. He said the mission is not just about feeding people but also about meeting other basic needs of those who are struggling. The mission focuses on helping families of terminally ill patients in hospitals by providing food and shelter. It also works to fulfill essential needs like education, jobs, and care for the elderly.
For the last 16 years, the Vijay Sri Foundation has been providing free services, benefiting thousands of people. Vishal Singh highlighted that the mission aims to gain global recognition like other organizations such as WHO, WWF, and Red Cross, which work for social causes.
During this meeting, Vishal Singh was appointed as the Chairman of the Hunger Free World Mission by representatives from various countries. They also discussed holding regular meetings in different countries to push the mission forward.
Business tycoon Dr. Abhishek Verma has also supported this humanitarian mission, vowing to promote the idea of “Seva Parmo Dharma” (Service is the highest duty) worldwide. Vishal Singh praised him, stating that people like Dr .Abhishek Verma inspire others to work for the betterment of society.
Recently, Romania’s Ambassador, Mr . Daniela Sezonov Ţane, invited Vishal Singh to the Romanian Embassy in Delhi, where they discussed the mission in detail. Impressed by his humanitarian work, she honored Vishal Singh and invited him to Romania to take the mission forward .
Food man Vishal Singh has been serving the people of India for the past 16 years. Through the Vijay Sri Foundation, he provides free meals to cancer patients & their families ,shelter, and education for women & children along with running free old-age homes in Lucknow.
In addition to his humanitarian work, Vishal Singh also addresses issues like crime and corruption through his role as Chairman of Seva Path Media and Managing Director of Vijay Sri Foundation.
During the COVID-19 pandemic, Vishal Singh and his team worked tirelessly to provide food and help to the needy, including starving children, elderly citizens, and pregnant women. Despite contracting the virus himself, he continued to assist others after his recovery. He even created a life-saving oxygen regulator using household items, which was praised by doctors both in India and abroad.
In his address at the meeting, Vishal Singh spoke about his mission to create a hunger-free world. He pointed out that India’s large population, along with issues like unemployment and poverty, has caused the country to fall on the Hunger Index. He urged people to contribute just one handful of grains daily to help create a hunger-free world.
He concluded by saying that through social participation, we can empower the people around us, meet their basic needs, and work together to build a stronger, more prosperous, and developed society.
Foodman Vishal Singh Honored for Hunger Free World Mission in Bangkok
Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
Cheers and Cheers: Barzilla’s Joyful Ode to Inclusivity and Celebration
Casino Days Reveal Internal Data on Most Popular Smartphones
Meghalaya Reserves Legalized Gambling and Sports Betting for Tourists
IPL 20202 UPDATE: KXIP vs MI IPL Dream11 Team Prediction for Today Match, Update Point Table of all Team.
In a Live debate AAP leader Syed Asad Abbas hurls abuses to BJP spokesperson Nupur Sharma.
‘India’s Most Wanted’ trailer out Arjun Kapoor on hunt of Osama-Bin-Laden
Time to move on: Sonakshi on Shatrughan’s joining Congress
