Finance Minister Urges State Governments to Provide Relief to the Common Man; Writes to Chief Ministers to Reduce Levies on Diesel, Kerosene and Domestic LPG in Line with Duty Cuts undertaken by Central Government

Union Finance Minister Shri Pranab Mukherjee has urged State Governments to reduce levies on Diesel, Kerosene and Domestic LPG in line with the duty cuts undertaken by Government of India, so as to provide some relief to the common man. In a letter to the Chief Ministers of States , Shri Mukherjee has sought the co-operation of States in this regard.

The Finance Minister has stated in his letter that even though the crude oil prices in the international market have been ruling at a very high level over the last six months, the Government has so far maintained a firm control over the prices of Diesel, Kerosene and Domestic LPG at the retail level to protect the common man. Shri Mukherjee has written that this however, has led to losses of the State owned Oil Marketing Companies (OMCs) spiraling out of control with the OMCs losing more than Rs. 450 crore per day due to the significant difference between India’s domestic prices and the international prices. This concern has necessitated some revision in the administered prices.

The Finance Minister, Shri Pranab Mukherjee has written that in raising the retail prices of diesel, LPG, and kerosene, the Government has been conscious of the burden on the common man, and therefore, the price hike has been minimal. Even though the Central Government has been under compulsion to maintain its fiscal and budgetary resource management targets and find additional resources to finance various welfare schemes, it has sacrificed its revenues from the oil sector on account of customs and excise duty in order to minimize the impact on the common man.

Shri Mukherjee has noted that the Central Government will have to allocate significant resources as subsidies to the OMCs, so as to ensure their financial survival.

Source- Press Release issued by Ministry of Finance

More Under Finance

Posted Under

Category : Finance (3517)
Type : News (12749)

0 responses to “FM urges Chief Ministers to Reduce Levies on Diesel, Kerosene and Domestic LPG”

  1. CA. Ashok Aggarwal says:

    Grapes are sour is old story now. UPA could roll back the prices if opposition could really had pressurised the Govt to do so but BJP just seeks more votes.

  2. A K Srivastava says:

    What is the status with the Central Govt? Does it get any additional revenue in the form of taxes and duties or it has also foregone the same and the Central Govt.’s share remains the same as before the hike?

  3. Adv R.L.Garg says:

    Sir,
    One puts the seeds and other get the fruits without any effort on the part of second one. It is a similar case that centre increase the prices of fuels and the states get higher tax revenue from the increased prices without any effort. I would even suggest that the performance of each Company / organisation / state should be assessed on the basis of turnover / revenue without inflation or increase in prices. It will help ven in putting brakes on the inflation . unnecessary increase result into heavy inflation. It needs further development and can be debated and discussed among st small group first. submitted for consideration

Leave a Reply

Your email address will not be published. Required fields are marked *