Moneycontrol's Sakshi Batra does a 3 Point Analysis of how the higher taxes on fuel are helping the government augment its dwindling coffers.
The price changes announced by oil companies are excluding local sales tax or VAT with effect from midnight on Thursday. The cut follows a fall in global crude prices.
After announcing a Railway Budget with no fare hikes, despite the fuel hike that will cost the Indian Railways Rs 850 crore, Railway Minister PK Bansal says he is just trying to meet the aspirational needs of the people.
Diesel is all set to get dearer soon. Oil companies are likely to announce another round of diesel price hike in a day or two. The price hike would provide some respite to oil retailers who are currently incurring a loss of around Rs 10 per litre on sale of diesel.
In an interview to CNBC-TV18, SP Tulsian of sptulsian.com opines that he expects a fuel hike of maybe Rs 1-2 by the oil marketing companies (OMCs). â€œI am not expecting the hike in paise, then government will see the effect, reaction of the opposition parties and of the people,â€ adds Tulsian.
Backing the fuel price hike by the government, Montek Singh Ahluwalia, Deputy Chairman of Planning Commission said that the increase was ‘inevitable’ as the global crude prices are at elevated levels.