Centre hikes excise duty on petrol by Rs 10/litre and diesel by Rs 13/litre

News Network
May 6, 2020

New Delhi, May 6: Taking a cue from states, the Centre announced one of the steepest hikes in duties on petrol and diesel in the recent past, by raising it by Rs 10 and Rs 13 per litre, respectively, in a notification issued late on Tuesday.

Retail prices, however, will see no change as the price hike will be absorbed by oil marketing companies against the fall in crude prices.

Road and infrastructure cess was hiked by Rs 8 for petrol and diesel and the special additional excise duty (SAED) was hiked by Rs 2 per litre and Rs 5 per litre, respectively. While the road cess will only go into the Centre’s coffers, the hike on account of SAED will be passed on to states via devolution at 42 per cent. Hence, the states will get only Rs 0.84 per litre in case of petrol and Rs 2.1 in case of diesel.

The decision comes after several states increased the value added tax (VAT) on petrol and diesel making use of the lower price regime. The Delhi government on Tuesday increased VAT on petrol and diesel to 30 per cent each, from 27 and 16.75, respectively. As a result, the price of petrol in Delhi increased by Rs 1.67 to Rs 71.26 a litre and diesel by Rs 7.10 to Rs 69.29 in Delhi on Tuesday.

Amid falling international crude oil prices, the Centre introduced an enabling provision in March to raise excise duty on petrol and diesel by Rs 8 per litre in the Finance Act. The government had on March 14 raised excise duty on petrol and diesel by? 3 per litre each, which was to help raise an additional ?39,000 crore in revenue annually.

This duty hike included Rs 2 a litre increase in SAED and Rs 1 in road and infrastructure cess. It raised SAED to Rs 10 for petrol and Rs 4 for diesel. The limit has now been increased to Rs 18 a litre in case of petrol and Rs 12 in case of diesel by way of amendment of the Eighth Schedule of the Finance Act.

Economists said the move would impact retail inflation by over half a percentage point at least. “With lower consumption, there was loss of revenue for Centre and states, who earn Rs 6 trillion annually or Rs 50,000 crore monthly from fuel. Amid lockdown in April, the collection must have come down to just Rs 5,000 crore, and this will hold for May.

This means that Centre and states have lost 20 per cent of annual revenue from fuel. Hence, they have hiked duties to recover losses,” said Madan Sabnavis, chief economist, CARE Ratings. He added that the hike will impact inflation by at least 0.6-0.7 percentage points.

According to industry experts, an estimate of the additional government revenue cannot be made as the consumption of petrol and diesel has dropped to 40 per cent of what it was before the lockdown. The duty hike comes following a drop in international crude oil prices in April, owing to lower consumption figures globally. At 11.50 pm on Tuesday, Brent was priced at $30.67 a barrel, while West Texas Intermediate (WTI) crude was seen at $24.36 a barrel. On Monday, the Indian basket of crude oil was priced at $23.38 a barrel, after touching a 15-year low last month.

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Agencies
April 24,2020

New Delhi, Apr 24: The Central government said on Wednesday that the number of COVID-19 cases in the country is now doubling in every 10 days, adding that had the lockdown not been imposed on time, the number of cases would have sky-rocketed to over one lakh by now.

"Had we not taken the decision to impose nationwide lockdown, we would have had around one lakh COVID-19 cases by now. This is a reasonable estimate," said Niti Aayog member V.K. Paul.

Paul, who is also the Chairman of the government's Empowered Committee- 1, said the "cases are now doubling in every 10 days."

"As on March 21, our doubling time of cases was three days. Results started showing on March 23, due to travel restrictions imposed earlier. On April 6, further slowing of doubling rate became visible, thanks to the nationwide lockdown," he added.

He further added that the decision to impose the lockdown was timely and asserted that the curve has begun to flatten.

"Nationwide lockdown helped take us away from the exponential growth curve and thereby contain the growth of COVID-19 cases," he said.

Paul further added that surveillance has been a great strength in containing the spread of the virus.

"Besides containing the spread, augmenting testing and improving preparedness, the nation has brought about a massive behavioural change through a ‘Jan Andolan' (mass movement)," he said.

Meanwhile, the number of confirmed cases in the country has crossed the 23,000-mark, with 718 deaths. Globally, the number of cases has crossed 2.7 million while the death toll has mounted to 1.9 lakh.

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News Network
January 3,2020

Mumbai, Jan 3: The Shiv Sena on Friday targeted the Centre by questioning the "efficacy" of the 2016 surgical strike and said the perception that it would demoralise Pakistani terrorists remained an "illusion" as Indian soldiers continue to get killed in terror attacks in Kashmir.

Accusing the Modi government of boasting about how Pakistan was straightened out after the surgical strike, the Sena sought to know whether it has really happened.

It also observed that troubled borders were not good for the country's well-being.

The Sena's remarks come in the wake of the death of an Army soldier from Maharashtra, Naik Sandip Raghunath Sawant, who was killed during a counter-insurgency operation in Jammu and Kashmir on Wednesday.

"The New Year did not begin on a positive note in Kashmir. Our jawan from Satara, Sandip Sawant, attained martyrdom in Kashmir along with two other soldiers. In the last one month, seven to eight jawans from Maharashtra were killed in the line of duty. The Maha Vikas Aghadi government in Maharashtra is not responsible for this," the Sena said in an editorial in party mouthpiece 'Saamana'.

The party also questioned whether the situation in Kashmir has improved after the surgical strike and abrogation of Article 370 provisions.

The party, however, maintained that scrapping Article 370 was a good move.

India had conducted the surgical strike on September 29, 2016, across the Line of Control (LoC) as a response to a terrorist attack on an Indian Army base in Uri sector of Jammu and Kashmir earlier that month.

Without naming the Centre, the Sena alleged, "Circulating news that only the Pakistanis were getting killed in Kashmir will not change the reality as tricolour-draped bodies of Indian soldiers, like Sawant, are reaching their respective villages."

"There is a bloodshed along the Kashmir border and mounting anger among the families of martyred jawans. The perception that surgical strike will demoralise Pakistani terrorists has turned out to be an illusion. In fact, the (terror) attacks have increased," it added.

The Uddhav Thackeray-led party accused the ruling BJP of boasting about straightening out Pakistan after the surgical strike.

"But has Pakistan been really straightened out? Rather Pakistan has been indulging in ceasefire violations along the LoC every day," it added.

The Shiv Sena also questioned the government's claim that the situation in Kashmir was under control after the nullification of Article 370.

"It is good that Article 370 was scrapped. Before that, surgical strike was carried out in Pakistan. But has the situation in Kashmir improved? The terror attacks continue. It's only that there is a control in reporting (these incidents)," it said.

The Sena also alleged that there was no clarity as to what was transpiring in Kashmir after the scrapping of Article 370 and only the media reports of soldiers sacrificing their lives have been coming out from that state

In a veiled attack on the BJP, its erstwhile ally, the Sena, also accused it of exploiting the surgical strike for political gains.

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Agencies
August 7,2020

New Delhi, Aug 7: India's COVID-19 cases tally crossed 20 lakh mark with the highest single-day spike of 62,538 cases on Friday, said Union Ministry of Health and Family Welfare.

The COVID-19 tally rises to 20,27,075 including 6,07,384 active cases, 13,78,106 cured/discharged/migrated and 41,585 deaths, according to the Ministry of Health.

Maharashtra with 1,46,268 active cases and 3,05,521 cured and discharged patients continues to be the worst affected. The state has also reported 16,476 deaths due to the infection.

Tamil Nadu has 54,184 active cases while 2,14,815 patients have been discharged after treatment in the state. 4,461 deaths have been reported due to COVID-19 in the state.

Andhra Pradesh with 80,426 active cases is the third on the list. There are 1,04,354 cured and discharged patients and 1,681 deaths reported from the state.

Delhi now has 10,072 active cases and 1,26,116 cured and discharged patients. 4,044 people have lost their lives due to the disease in the Union Territory so far. 

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