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Petrol,diesel,LPG prices hiked as oilcos ‘recalibrate’ rates

State-owned oil firms recalibrated rates to reflect changes in levies; Mamata holds out threat.

Written by Agencies | New Delhi |
July 25, 2012 5:25:34 pm

Petrol and diesel prices were today hiked in seven states like West Bengal and Maharasthra and that of domestic LPG in six states as state-owned oil firms recalibrated rates to reflect changes in local levies.

The exercise also resulted in petrol and diesel prices being reduced in 11 states like Karnataka,Goa,Gujarat and Odisha from today. Besides,LPG prices were reduced in 12 states including Gujarat,Tamil Nadu,West Bengal and Odisha.

While there will be no change in price of petrol in Delhi,Kolkata would see an increase of Rs 2.52 a litre to Rs 76.13 per liter. Petrol in Mumbai will cost Rs 75.14 from today as against Rs 74.23 per litre till yesterday. But in Chennai,rates have been cut by Rs 0.97 per litre to Rs 72.19.

The changes in prices of petrol are over and above the Rs 0.70 per litre hike that was effected from July 24.

Diesel price in Delhi would remain unchanged at Rs 41.29 per litre but it would be raised by Rs 0.92 per litre to Rs 44.66 in Kolkata and by Rs 0.89 to Rs 45.28 a litre in Mumbai.

But in Chennai,rates have been cut by a marginal 12 paisa to Rs 43.83 a litre.

This follows state-run fuel retailers recalibrating surcharge calculations to align with changes made in local levies like entry tax on crude oil,surcharge on sales tax and CST/purchase tax on inter-company sale,by state governments.

Domestic LPG price has been hiked by Rs 19.43 per 14.2-kg cylinder in Assam,by Rs 9.16 in Bihar and Rs 8.72 per cylinder in Maharashtra.

LPG will cost Rs 9 more at Rs 423 in Mumbai but there will be no change in rates in Delhi where it is sold at Rs 399.26. In Kolkata prices have come down by Rs 4 to Rs 401 and in Chennai by Rs 7 to Rs 386.50

But the rates of domestic cooking gas have been cut by Rs 10.18 per cylinder in Gujarat,by Rs 7.01 in Tamil Nadu,Rs 3.86 in West Bengal and Rs 4.15 in Odisha. It costs Rs 405 in Kolkata and Rs 393.50 in Chennai.

Also,rates of PDS kerosene have been marginally raised in 8 states like Assam,Bihar and Maharashtra but cut in 9 states including Gujarat,Jharkhand,West Bengal and Odisha.

The recalibration of ‘state surcharge’ has been done under a scheme to compensate fuel retailers for irrecoverable taxes such as entry tax on crude,surcharge on sales tax and CST/purchase tax on inter-company sale of products levied by state governments or local authorities.

The retailers would now review the surcharge regime every quarter,Indian Oil Corp,the nation’s largest oil firm,said in a statement.

The government had in January 2003 notified ‘The Irrecoverable Taxes Compensation Scheme,2002’ to compensate oil companies for irrecoverable state taxes.

“The scheme provides for compensation to oil marketing and refining companies in respect of irrecoverable state taxes levied by the states/ local authorities such as entry tax on crude,surcharge on sales tax,CST/purchase tax on inter-company sales of petroleum products and any other irrecoverable taxes,” it said.

The compensation was set off with the amount being collected by the oil marketing companies through the consumer selling price under the head ‘State Surcharge’ for the period 2002-03.

The surcharge element in the price build-up ensured that the incidence of any irrecoverable tax of the particular state was recovered from the respective state. “The rate of ‘State Surcharge’ has remained unchanged since then,” it said.

IOC said oil companies had been suffering losses on account of irrecoverable taxes and they have since decided to implement the revised structure of ‘state specific cost’ to cover the irrecoverable taxes.

“As a result of the said revision,diesel prices shall stand reduced in 11 states. Kerosene prices shall stand reduced in 9 states,LPG prices in 12 states and petrol in 11 states,” it said. Similarly,diesel prices shall stand increased in 7 states,kerosene in 8 sates,LPG in 6 and petrol in 7 states.

Mamata slams centre on fuel prices,threatens confrontation

Kolkata: West Bengal Chief Minister Mamata Banerjee today slammed the UPA government for hiking petrol and diesel prices ‘suo motu’ in seven states and demanded its immediate rollback while threatening to go for a ‘political confrontation’ with the Centre.

”We consider this decision as suo motu,one-sided,wrong and demand its immediate rollback,” Banerjee told reporters at Writers’ Buildings (the secretariat) shortly on her return from Delhi where she attended the presidential swearing-in.

”Why was such a decision taken without consulting the state governments and UPA allies at a time when we were busy attending the swearing-in ceremony of President Pranab Mukherjee in Delhi this morning … This amounts to cheating the people,” she said.

The oil companies and the union petroleum ministry decided on the hike ‘sitting at home in the name of recalibration of rates’. ”Why was such an exercise undertaken nine years after it was decided in 2003?”

The recalibration,she said,was done only to withdraw subsidy. ”Subsidies have to be given in the interest of the poor. Centre realises maximum revenue from the state leaving very little for them.”

”Do not force us to go for political confrontation (with the centre) or we will take to the streets”,Banerjee said.

The hike would affect a poor state like West Bengal and ‘add salt to injury’.

”West Bengal is suffering from lack of funds due to debt left by the former Left Front government and allowed by their friends the Congress at the centre. The state has not received a single paise from the Centre since my government came to power,including the 3-year moratorium on loans that it had been repeatedly asking for.”

Banerjee said since 2003 two governments had completed their terms at the centre. ”Why is the recalibration being done now after nine years? You(centre) have to review the situation if a decision of 2003 has to be implemented now.”

”I think no right has been given to anyone increase the burden on people and impose taxes tactfully through different plans,” the Trinamool Congress (TC) chief,who had been vocal in the past against moves either by the centre or the oil companies to hike oil prices,said.

”The centre hiked petrol price by Rs eight at one go. Now it should tell clearly what is the subsidy it is giving and what it is withdrawing … We don’t like blackmailing and cheating of common people everyday.”

She said since TC had protested against the centre for rise in prices of essential commodities,pressure was being put to ‘defame allies like us running governments in the states and to create an atmosphere of confrontation among the states’.

”I fail to understand the way the government is running (at the centre). We will be forced to take to the streets and choose the path of confrontation if such things take place,” she added.

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