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April 2018
 |
Fuel
(The Total Investment & Insurance Solutions)
Petroleum
products should be brought under GST so that consumers can get the benefit of
price rationalisation, Union Minister Dharmendra Pradhan said on Monday, a day
after transport fuel prices in Delhi hit record highs, even as cleaner Euro-VI
grade petrol and diesel supply began here.
Speaking
at an event here to mark Sunday's launch in Delhi of the "cleanest
available" Euro VI emission norm-compliant BS VI fuels, in place of the
earlier Euro IV grade, Pradhan recalled how the Central government had cut
excise duties on fuels last year in the face of rising global crude prices and
some states had followed suit by cutting local taxes.
"On
prices we have nothing to hide... petrol, diesel are international commodities
and whenever there is a hike or fall in global rates we pass it on to the
consumers," Pradhan said, noting that prices change on a daily basis under
dynamic pricing. The Total Investment & Insurance
Solutions
"India
is a consumer sensitive country and the government has cut excise duties last
year... some states also reduced VAT on fuels. States should now respond
accordingly and responsibly."
"In
this regard, I appeal again to the GST Council, finally this product has to
come under GST (Goods and Services Tax) so that the consumer can benefit from
price rationalisation," he said in a reference to states not being in
favour of including petroleum in the new indirect tax regime for fear of losing
excise revenue.
The
price of petrol in Delhi on Monday was at Rs 73.83 a litre, which marks a
four-year high, while diesel was at an all-time high of Rs 64.69.
Pradhan
also noted that the price of the Indian basket of crude oils had gone over $70
a barrel by the close of trade on the weekend.
State-run
IndianOil Corp (IOC) Chairman Sanjiv Singh said though massive investments had
been made to supply the improved BS VI fuel, Delhi consumers are not being
passed on any of the additional cost of production for the time being. The Total Investment & Insurance Solutions
He
said a mechanism for recovering the cost would be worked out when the entire
country shifts to Euro-VI grade fuel.
The
April 2020 deadline for the country to implement BS-VI grade fuels had been
advanced for Delhi to April 1, 2018, in view of the extremely high levels of
air pollution. The Total Investment & Insurance
Solutions
Singh
also said the Euro VI fuel combined with the lesser grade cars and
two-wheelers, presently available, would result in 10-20 per cent reduction in
particulate emission in Delhi but for full benefit, the vehicles too need to
have Euro VI engines. The Total Investment
& Insurance Solutions
In
this connection, Pradhan suggested that auto manufacturers can make the minor
remodifications required for the domestic market to the Euro VI compliant
vehicles that they are currently exporting.
"It
would require that they change the left-hand drive of these export cars to the
right side... but are SIAM (Society of Indian Automobile Manufacturers)
prepared to do so," he asked.The Total
Investment & Insurance Solutions
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