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Old 20th July 2021, 00:44   #7276
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Default Re: The Official Fuel Prices Thread

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Originally Posted by IamNikhil View Post
Currently, the highest GST slab set by the GST Council is at 28%. Presently, the cumulative tax collected on petroleum products by both, Central & State governments stands at approx 60%..
Cess can be added above GST. Some cars are taxed at 43%’( 28 + 15 % cess). So this GST theory doesn’t make much sense.

First government has increased tax on diesel by 900%( 3.8 to 32) & petrol by 260% ( 9 to 32). Second government decreased tax on petrol and diesel by 1% ( 32 to 31% and 24 to 23%). You are teling that first government is not at all responsible for price hike and second governments are responsible for price increase. Actually it is opposite.

I wonder why we need to pay Rs 18 as road infrastructure cess for every litre and diesel we purchase while we are paying Toll for the same purpose

Last edited by anb : 20th July 2021 at 01:14.
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Old 20th July 2021, 02:00   #7277
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Default Re: The Official Fuel Prices Thread

Brent crude is still in the 60s in USD per barrel. Back in 2011-13 it went around 110s $. I won't be surprised for petrol price to reach 150 INR per litre before the year ends. If crude price goes above 100$ then it would probably cross 200 INR.
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Old 20th July 2021, 07:10   #7278
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Default Re: The Official Fuel Prices Thread

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Originally Posted by IamNikhil View Post
Currently, the highest GST slab set by the GST Council is at 28%.

Check out Demerit Goods & Luxury goods. They have Cess on top of the GST rates. On tobacco, it's 290% ad valorem. On pan masala it's 135%. Luxury Cars have 25% cess on top of the GST.
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Old 20th July 2021, 09:54   #7279
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Default Re: The Official Fuel Prices Thread

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I wonder why we need to pay Rs 18 as road infrastructure cess for every litre and diesel we purchase while we are paying Toll for the same purpose
Agree to this. Toll is an additional burden. Toll rates are revised almost every financial year and the conservative estimates peg the toll rate increase to over 250% in the last 9 years. While we pay our toll diligently, the toll operators have conveniently ignored govt directives like letting cars pass without paying toll if the wait time at the plaza extends beyond 10 secs and in most cases, not bothering to maintain the roads they are mandated to operate.
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Old 20th July 2021, 09:55   #7280
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Default Re: The Official Fuel Prices Thread

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Check out Demerit Goods & Luxury goods. They have Cess on top of the GST rates. On tobacco, it's 290% ad valorem. On pan masala it's 135%. Luxury Cars have 25% cess on top of the GST.
Yes of course. Thanks for pointing this out. That's almost like a sin tax. Frankly, there needs to be a cohesive taxation policy, instead of the labyrinth of taxes in force currently
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Old 20th July 2021, 12:44   #7281
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Default Re: The Official Fuel Prices Thread

Most of the oilcos are making distributable profits of 10% & higher. The Governments are fighting each other & none want to reduce taxes whether GST (including Cess) & Excise Duties (which again are shared with States).

The first step should be to minimise the profits of Government oilcos as the monopolistic situation they are in will make sure private players also sell at same prices. They can easily sell fuel at 10% lower prices (factoring in the profits after taxes they report). As someone in past said (but not practiced) Government has no business being in business - it can be inferred as it needn't make profits by serving people. But the situation will never improve, even if there's change in at the various levels. Politicians won't pay bill & bureaucracy & judiciary get everything for free as the tax payer is burdened not just by humongous population, but also by the monstrous appetite of public administration.
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Old 20th July 2021, 13:18   #7282
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Default Re: The Official Fuel Prices Thread

Excise collection from fuel rises 88%. 3 month collection of 94,181 cr in first quarter.

The Official Fuel Prices Thread-e233cda910a94259be8575287bb2a84e.jpeg
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Old 20th July 2021, 13:45   #7283
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Default Re: The Official Fuel Prices Thread

Oil producing nations agree deal to control prices



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Oil producing nations have agreed to increase their output, with the aim of reducing prices and easing pressure on the world economy.
The Opec cartel and partners such as Russia will boost supply from August after prices climbed to two-and-half-year highs during the pandemic.
The move should have an impact on petrol prices at the pump, which have also rocketed.
The price of Brent crude oil is up 43% this year to almost $74 a barrel.
Last year, Opec and its partners cut production by a record 10 million barrels per day (bpd) amid a pandemic-induced slump in demand and collapsing prices.
However, this year the price of oil has surged as economies have reopened, contributing to rising inflation in some countries and threatening to put the brakes on the global recovery.
Full news Article

Cheers
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Old 20th July 2021, 14:36   #7284
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Default Re: The Official Fuel Prices Thread

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Originally Posted by Joxster View Post

Oil producing nations agree deal to control prices





Full news Article

Cheers
Yep, tax rates are going to increase even more now. We could see 200₹/lit by this year end only. Don't hope from this draconic government to pass on the benefits to us.
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Old 20th July 2021, 15:40   #7285
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Default Re: The Official Fuel Prices Thread

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Originally Posted by vharihar View Post
Let me clarify:
As I've stated in the past, I'm not supportive of fuel tax increases. But if the present govt tells me that the fuel tax hike is temporarily needed (say for 1 year) to compensate for the shortfall in tax collection due to Covid in 2020 and in order to continue to keep infra expenditure high, then I'm inclined to believe it. This govt has earned my trust (by a huge margin, over any other govt), precisely due to the infra works that it has actually demonstrated and is demonstrating on the ground. So I'm willing to give them the benefit of doubt.

The purpose of my past few posts was just to negate the claims made by some that "Oh, what infra works have happened in the present regime? Its nothing unusual, its the same as any other regime." I just wanted to negate that claim, giving solid proof in the process.
If the CEO of Niti Aayog is to be believed in last week's interview, then it appears that my supposition was true after all. See:

https://www.ndtv.com/india-news/niti...ucture-2487580

Though it would have been better for the govt to be more forthcoming regarding this and clearly state so.

Being an infra nerd and a petrolhead, and this govt having earned my full trust on infrastructure construction, I for one would have been willing to pay the increased fuel taxes ungrudgingly if this messaging would have been clear upfront.
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Old 22nd July 2021, 16:29   #7286
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Default Re: The Official Fuel Prices Thread

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Originally Posted by vharihar View Post

Being an infra nerd and a petrolhead, and this govt having earned my full trust on infrastructure construction, I for one would have been willing to pay the increased fuel taxes ungrudgingly if this messaging would have been clear upfront.
You pay Rs 18 per litre as road infrastructure cess for every litre of diesel & petrol. Again you pay toll every time you travelled through these roads. How this can be justified? If there is massive road infrastructure cess on fuel, what is the need of the toll ?

Last edited by anb : 22nd July 2021 at 16:32.
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Old 22nd July 2021, 18:11   #7287
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Default Re: The Official Fuel Prices Thread

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Originally Posted by vharihar View Post
Being an infra nerd and a petrolhead, and this govt having earned my full trust on infrastructure construction, I for one would have been willing to pay the increased fuel taxes ungrudgingly if this messaging would have been clear upfront.
Where is the infra coming up?. All are funded through banks (and indirectly people's money) on PPP model, which will be paid back through toll collection.

And please see the quality of the infra. In gurgaon, 3 overbridges/underbridge combo was built on NH by NHAI and all 3 had breakages and cracks within 1 year of opening. Answer was traffic more than anticipated levels.

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You pay Rs 18 per litre as road infrastructure cess for every litre of diesel & petrol. Again you pay toll every time you travelled through these roads. How this can be justified? If there is massive road infrastructure cess on fuel, what is the need of the toll ?
Valid question. Why double taxation?
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Old 22nd July 2021, 22:41   #7288
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Default Re: The Official Fuel Prices Thread

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You pay Rs 18 per litre as road infrastructure cess for every litre of diesel & petrol. Again you pay toll every time you travelled through these roads. How this can be justified? If there is massive road infrastructure cess on fuel, what is the need of the toll ?
As a resident of Chennai, I have always been intrigued and angered while paying the toll charges at OMR (Old Mahabalipuram Road) which is essentially a 20 km road on level ground inside city limits with no subway/flyovers anywhere. I had always wondered isn't it the responsibility of the Chennai Municipal Corporation to provide road inside city limits to its residents, while it is collecting 11% registration charges on all the properties sold (lakhs of houses are there along OMR)? Why should a resident of Chennai pay through his nose so much of registration charges and then still pay a toll charge to drive in a intra-city road on level ground? Isn't this unfair? Can experts throw some light on the rules? Thanks in advance.
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Old 23rd July 2021, 08:02   #7289
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Default Re: The Official Fuel Prices Thread

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Originally Posted by Geta View Post
Why should a resident of Chennai pay through his nose so much of registration charges and then still pay a toll charge to drive in a intra-city road on level ground? Isn't this unfair? Can experts throw some light on the rules? Thanks in advance.
Same thing with Mumbai. Even if one has a Mumbai registered car, he/she needs to pay toll while entering and exiting Mumbai.
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