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Jul 25, 2012, 03.05 PM IST
Indian Oil has said that fuel tax levies within states have been tweaked. The company said that they will implement revised 'state specific cost' to cover irrecoverable taxes, reports Siddharth Zarabi of CNBC-TV18.
Indian Oil has said that fuel tax levies within states have been tweaked. The company has said that they will implement revised 'state specific cost' to cover irrecoverable taxes, reports Siddharth Zarabi of CNBC-TV18.
The company has issued the statement and for two reason the statement is important. Firstly, it raises the price of diesel amongst other products in several states. As a result of the decision, diesel price is up in seven states. Kerosene prices is up in eight states, LPG cooking gas prices have increased in six states and petrol prices have increased in seven states.
A parallel reduction in diesel has happened in 11 states and the other sea products. States like Assam, Bihar, West Bengal and Maharashtra will see an increase in diesel price.
As a result of which price in Assam will increase by Rs 2 and Rs 1.5 in Bihar. This scheme will now come into play with effect from 6 hours back and will be reviewed every quarter.
Earlier, there was speculation that diesel prices will be increased by Rs 3, but now, old scheme on irrecoverable taxes has been bought back by the oil companies which permits them to tweak all the four products including the politically sensitive products, LPG and kerosene.
The oil companies are forming this rationalization and they will link it to the taxation.
Long-term view on this development implies that a major step has been introduced using a different technique for the first time where kerosene and LPG prices are also under the graph of rationalization.
We may not see a major increase in diesel price or decrease in other products. We are now going to live with the scheme where prices will fluctuate under the cost recovery scheme every quarter.
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