Petrol price on Thursday was cut by Rs 6.07 per litre and diesel price by Rs 11.75 in Delhi as oil companies passed on a record reduction in excise duty rates to consumers.
Buckling under pressure, the government had on Wednesday cut excise duty on petrol by Rs 5 per litre and that on diesel by Rs 10 a litre to give reprieve to consumers battered by record high retail fuel prices. Since states charge local sales tax or VAT not just on the base price but also on the excise duty levied by the centre, the total incidence of price reduction is higher.
Petrol will cost Rs 103.97 per litre in Delhi against Rs 110.04 per litre, according to a price notification of state-owned fuel retailers.
In Mumbai, petrol price has been cut by Rs 5.87 to Rs 109.98 per litre and diesel by Rs 12.48 to Rs 94.14 per litre. Kolkata saw the price of diesel being reduced by Rs 5.82 to Rs 104.67 per litre and that of diesel by Rs 11.77 to Rs 89.79 per litre.
Petrol price in Chennai has been reduced by Rs 5.26 to Rs 101.40 per litre and diesel by Rs 11.16 to Rs 91.43 per litre.
VAT rates differ from state to state, leading to differential rates of fuel.
The excise duty cut announced on Wednesday night is the highest-ever reduction in excise duty. It rolls back a part of the Rs 13 and Rs 16 per litre increase in taxes on petrol and diesel effected between March 2020 and May 2020 to avoid passing on to consumers the sharp fall in international oil prices.
The hike in excise duty had taken central taxes on petrol to their highest level of Rs 32.9 per litre and that on diesel to Rs 31.8 a litre.
Reducing the excise duty, the Union government also urged states to commensurately reduce VAT on petrol and diesel to give relief to consumers. Six BJP-ruled states of Uttar Pradesh, Goa, Karnataka, Uttarakhand, Tripura and Bihar reduced VAT.
The tax cut follows an unrelenting hike in international oil prices pushing pump rates across the country to their highest-ever levels. While petrol soared to above Rs 100-a-litre-mark in all major cities, diesel had crossed that level in more than one-and-a-half dozen states.
The total increase in petrol price since the May 5, 2020 decision of the government to raise excise duty to record levels had totalled Rs 38.78 per litre. Diesel rates have during this period gone up by Rs 29.03 per litre.
The relentless increase in fuel prices had been severely criticised by Opposition parties, particularly Congress which had demanded that the government reduce its excise duty.
Based on April to October consumption numbers, the loss of revenue to the government due to the excise duty cut will be Rs 8,700 crore per month. This totals to an annual impact of over Rs 1 lakh crore, industry sources said. For the remainder of the current fiscal, the impact would be Rs 43,500 crore.
Data available from the Controller General of Accounts (CGA) in the Union Ministry of Finance showed excise duty collections during April-September 2021 surged to over Rs 1.71 lakh crore from Rs 1.28 lakh crore mop-up in the same period of the previous fiscal. For the full 2020-21 fiscal, excise collections were Rs 3.89 lakh crore and Rs 2.39 lakh crore in 2019-20, the CGA data showed.
After the introduction of the Goods and Services Tax (GST) regime, excise duty is levied only on petrol, diesel, ATF and natural gas. All other goods and services are under the GST regime.
Minister of State for Petroleum and Natural Gas Rameswar Teli had in July told Parliament that the union government’s tax collections on petrol and diesel jumped by 88 per cent to Rs 3.35 lakh crore in the year to March 31, 2021 (2020-21 fiscal) from Rs 1.78 lakh crore a year back.
Excise collection in pre-pandemic 2018-19 was at Rs 2.13 lakh crore.
2,55,874 New Covid Cases In India, Positivity Rate Down To 15.5%
India on Monday recorded 2,55,874 new coronavirus cases, 16.39 per cent lower than Monday’s figure of 3.06 lakh cases. During the same period, the country reported 439 virus-related deaths, bringing the total number of fatalities to 4,89,848.
At 22,36,842, active cases in India now comprise 5.62 per cent of the total infections, while the national COVID-19 recovery rate marginally increased to 93.15 per cent.
Delhi also reported 5,760 new coronavirus cases on Monday. Meanwhile, the country has administered 162.92 crore vaccine doses.
J&K: 85 people Died of COVID in 24 Days
In Jammu and Kashmir, especially in the Jammu division, once again, the process of death of corona infected patients has started. So far this month, 85 patients have died. Of these, 54 are residents of the Jammu division. Many of the patients who died were those who had taken both doses. However, many of them were already suffering from some disease.
According to the National Health Mission data, eight more corona infected patients died on Monday. Four were residents of the Jammu division and four from the Kashmir division. In the Jammu division, two died in the Jammu district. A 65-year-old man from Akhnoor, a Gudha Brahmin, was also among those killed. The maximum number of deaths this month, thirty patients, occurred in the Jammu district. All of them were residents of different areas of the Jammu district. Twelve patients had taken both doses of the corona vaccine. Apart from this, four were residents of Udhampur district, while four were residents of Rajouri, two Doda, five Kathua, one Kishtwar, four Poonch, two Ramban and two Reasi. Samba is the only district where not a single patient died.
In Kashmir, seven corona infected patients died in the Srinagar district while four in Baramulla, eight in Budgam, three in Pulwama, four in Kupwara, four in Anantnag, one in Bandipora, one in Kulgam. On the other hand, not a single patient died in Shopian and Ganderbal districts. In the second wave of corona infection, the maximum number of patients died in the Jammu district.
Although the number of patients who died is less, the maximum number of patients are dying in the Jammu district. About 33 per cent of the total deaths occurred in the Jammu district. Principal of GMC Jammu, Dr Shashi Sudan, says that many of the patients who died after taking both doses were already suffering from other diseases. She asked all to follow Corona appropriate behaviour. She said that only by following all the protocols one could avoid the third wave.
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