even as Petrol and Diesel Prices Recently brought in by the Central Government by cutting excise duty, fuel retail dealers are complaining that they are under pressure to keep the sale of fuel under control and the situation is due to shortage of fuel in retail outlets and law and order problems. could be the reason.
In a recent letter to the Oil Industry Coordinator, that is BPCL, the Association of Indian Petroleum Dealers said, “We, OMC (Oil Marketing Company) dealers are now under pressure to be cautious in the sale of fuel by companies. There has been, both petrol and diesel, especially the latter and we should not sell more and more than normal sales,” according to a report by ET.
Reliance BP Mobility Ltd (RBML), a joint venture of Reliance Industries and BP, has told the government that the private fuel retail sector is volatile after public sector companies often keep petrol and diesel prices far below their cost.
Oil marketing companies stabilized fuel prices for 137 days starting November 2021 and again went into a break of 47 days. Reports claim that the freeze fuel prices Fuel retailers have suffered losses since February 2022. As of May 16, the net under-recovery in the industry was Rs 13.08 per liter for petrol and Rs 24.09 per liter for diesel.
On May 21, the central government had cut excise duty on petrol by Rs 8 per liter and on diesel by Rs 6 per liter. The cut was estimated to have translated into a reduction of Rs 9.5 per liter in petrol prices and Rs 7 per liter in diesel, taking into account its impact on other duties. After this, many state governments including Kerala, Maharashtra and Rajasthan also cut VAT on petrol and diesel, which further reduced the rates in those states.
After the Center cuts excise duty, the price of petrol in Delhi has gone up to Rs 96.72 per liter, while the price of diesel per liter is now Rs 89.62. Petrol was selling at Rs 111.35 per liter in Mumbai after the latest excise duty cut, while diesel was selling at Rs 97.28 per litre.
recently, Nirmala Sitharaman said that the excise duty deducted on petrol and diesel is not shareable with the states and will be fully borne by the Centre. “Basic Excise Duty (BED), Special Additional Excise Duty (SAED), Road and Infrastructure Cess (RIC) and Agriculture and Infrastructure Development Cess (AIDC) together make up the excise duty on petrol and diesel. The basic ED may be shared with the states. SAED, RIC and AIDC are non-shareable.”
He said the reduction in excise duty of Rs 8 per liter on petrol and Rs 6 per liter on diesel (effective from today) has been done entirely in the Road and Infrastructure Cess (RIC). He said in another tweet, “In Nov ’21 also the reduction of Rs 5 per liter in petrol and Rs 10 per liter in diesel was done completely in RIC.”
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