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Budget: Excise cuts have no effect on fuel prices, disappoints industry

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New Delhi, Feb 2 (IANS) With the strategic petroleum sector still outside the GST regime, petrol and diesel were among the few other items that figured among the part on indirect taxes in the last full budget just presented by Finance Minster Arun Jaitley before the 2019 general elections.

Even as the Union Budget 2018-19 proposed levy of road and infrastructure cess of Rs 8 per litre on petrol and diesel, while abolishing the additional excise duty of Rs 6, global prices pushed petrol to a nearly three-and-a-half-year high of Rs 73.05 per litre in Delhi on Thursday.

The basic excise duty on unbranded petrol was slashed by Rs 2 from Rs 6.48 per litre and on branded petrol from Rs 7.66 per litre.

Similarly on unbranded diesel, additional excise duty was brought down from Rs 8.33 per litre to Rs 6.33 per litre and on branded diesel from Rs 10.69 per litre to Rs 8.69 per litre.

Finance Secretary Hasmukh Adia told a post-Budget media briefing that the changes would not affect the customer.

“Excise on petrol and diesel has been reduced by Rs 2, which has been converted to cess. Consequently, there is no change in price for the consumer,” he said.

Expectedly, governed by the dynamic daily pricing system adopred by state-run oil marketers last year, petrol prices on Friday rose by a marginal 5 paise per litre in Delhi, Kolkata, Mumbai and Chennai, while diesel prices in these key metros were left unchanged.

With Friday’s hike, petrol prices have been increased by Rs 3.07-3.29 per litre in the four metros so far this year, while diesel rates raised by Rs 4.47-5 per litre, according to Indian Oil Corporation.

Petrol costs Rs 73.1 per litre in Delhi, Rs 75.79 per litre in Kolkata, Rs 80.96 per litre in Mumbai and Rs 75.82 per litre in Chennai.

Diesel prices on Friday were at Rs 64.11 per litre in Delhi, Rs 66.78 per litre in Kolkata, Rs 68.27 per litre in Mumbai and Rs 67.62 per litre in Chennai.

Petrol prices reached landmark levels on Thursday in key metros Kolkata, Mumbai and Chennai at Rs 75.74, Rs 80.91, and Rs 75.77 per litre respectively.

Asked about the cut in excise duty and imposition of road cess in the Budget, analysts said it was the global crude oil prices which were driving petrol and diesel rates.

“That depends on the crude oil price outlook. Crude oil prices have been increasing for the last six months after 2-3 years of lull. So, given that it is free pricing now, any projection on prices of petrol and diesel will be difficult,” said Raju Kumar, tax partner, EY.

“Finance Minister Arun Jaitly’s populist measure of reducing basic excise duty on fuel comes at a time when petrol prices have hit Rs 80 across major cities in India. For the past few years, the excise on the commodity has always remained steep despite crude prices almost halving since early 2016,” said Saurabh Bhagotra, Solicitor at Zaiwalla & Co.

Global and domestic factors have spiked the fuel prices. Production curbs by the Organisation of the Petroleum Exporting Countries and high demand have led to the surge. On Thursday, price of the Brent crude oil was around $69 per barrel.

Industry players welcomed the latest budget’s “emphasis on last mile energy access”, but lamented the lack of measures to reduce the country’s huge dependence on oil imports.

“We see little action in addressing the fundamental immediate need of the economy to attain energy security and reduce the burden of crude oil import at a time when oil prices are rising,” Vedanta Cairn Oil & Gas Chief Executive Sudhir Mathur said in a statement.

“Reducing the cess rate from 20 per cent to 8 per cent in line with industry recommendations, creating a level playing field for domestic production vis-à-vis imported crude, and addressing issues of fair pricing and additional royalty burden will spur confidence and help both investment inflow and the nation’s energy independence,” he added.

“The energy sector reforms,’steps to curb stubble burning coupled with the outlay Of Rs 16,000 crore to distribute free gas connections and power to unserved will give further boost to the economy and broaden access to cleaner energy,” said Shell India Chairman Nitin Prasad.

–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

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World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

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