Real-time Stock quotes, portfolio, LIVE TV and more.
May 29, 2012, 07.16 PM IST
Finance minister, Pranab Mukherjee has reached out to state governments to reduce the fuel price burden. Sources say that the minister has promised to match the contribution if states cut levies.
Finance minister, Pranab Mukherjee has reached out to state governments to reduce the fuel price burden . Sources say that the minister has promised to match the contribution if states cut levies.
CNBC-TV18's Aakansha Sethi reports, the state will have to decide whether they have the fiscal room to cut duties, but the finance minister has certainly reached out to all state chief ministers. The finance minister said that if the state cuts duties on fuel products and duties ranging from 25-33%, then the center will also match the contribution.
But, looking at the figures, there is a feeling that the only product where the center can actually cut levies is petrol. It is a product where the central levy is about Rs 14.58 per litre. On diesel, the rates have already been cut from Rs 4.68 per litre to about Rs 2.06 per litre. This essentially compromises the road cess and education cess which cannot be done away with. Hence, the only place where they have room to cut duties is petrol.
LPG and kerosene too has no central levy. This is an indication of the fact that the centre maybe going ahead and cutting excise on petrol also. The EGoM scheduled for 1 June will decide whether there will be a hike in diesel or LPG prices. It will depend on the political situation, which as of now is not conducive to a hike in diesel and LPG prices. Secondly, it will also depend on the rupee, which will actually force the government to take a decision.
Also watch the accompanying video.
Tags: Pranab Mukherjee, Finance minister, fuel price, fuel, petrol, diesel, LPG, kerosene, Aakansha Sethi
May 21 2013, 13:56
- in Results Boardroom
May 21 2013, 11:05
- in MARKET OUTLOOK