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India imports 83 per cent of its oil requirements and any spike means higher imp­ort bill and higher domestic prices. The others would definitely follow.Sources in the government said that though the Centre has ruled out any immediate cut in excise duty on petroleum products, it may re-examine the situation next month and could consider changes if oil prices remain over 75 a barrel for most part of September and state governments come on board to reduce VAT rates. The average VAT rate is over 30 per cent and states have actually made a killing during the current run of retail price rise for petrol and diesel as it has increased their tax kitty substantially. If oil cartel OPEC refuses to pump in an extra 1. This would make life miserable for the common man as petrol and diesel prices could cross Rs 100 a litre in the absence of any government support,” said an oil sector analyst asking not to be named.Compared to states, the Ce­ntre’s excise collection fr­om petroleum sector has actually fallen marginally in FY18 to Rs 2,29,019 crore in FY17 from Rs 2,42,691 cr­ore. Centre’s excise collection from petroleum sector has actually fallen marginally in FY18 to Rs 2,29,019 crore in FY17 from Rs 2,42,691 crore.The economy is growing by over 8 per cent and tax revenues are going up.

The important issue is to prevent any further inc­r­ease in diesel prices that co­uld fuel inflationary pressu­re and put pressure on gr­o­wth prospects of the economy,” said B K Chaturvedi, ex-cabinet and oil secretary.31 and Rs 71.The benchmark Brent has already re­ached 78 a barrel, while ru­pee depreciated further on Tuesday to close at a re­cord low of Rs 71. However, this cut came after the government had raised duty on nine occasions between November 2014 and January 2016 taking advantage of falling oil prices then. Excise duty cut would be the last option and if it happens, it would be at moderate levels of Rs 2 per litre, said the sources.34 a litre in Delhi, respectively. But it has more than do­u­bled from Rs 99,184 crore in FY15 due to nine increases in duty rates. Consumers may have to wait for another month before there is any rubber seal strip Manufacturers moderation in the retail price of petrol and diesel that reached new highs in the past few days in the wake of the rise in global oil prices and a sharp depreciation of the rupee.

The Centre should ensure that the stat­es where the government is being run by the ruling party takes up the responsibility of reducing value-added tax (VAT) rates first.Sources said that as part of the exercise to tame petrol and diesel prices, the centre is nudging states to cut VAT rate on the two products.34 a litre in Delhi.In addition, state-owned oil marketing companies have also been told to reduce the frequency of daily price increases and absorb some losses till crude prices moderate. In fact, the ad valor­em duty on petroleum products have consistently incre­a­sed state’s tax collections at the غير مجاز مي باشدt of consumers who have to bear with higher pri­ces of petrol and diesel. With US sanctions on Ir­an bec­oming effective fr­om November, the fear is th­at crude could rise further. It could rise further if crude oil and product prices move up in international markets. Petrol and diesel rates reached fresh highs on Tuesday commanding a pr­ice of Rs 79. But immediately, states should agree to cut VAT rate on petrol and diesel by 5-6 per cent along with some cut in excise rate by the centre. There is no reason why the government’s reliance on oil sector for taxes should reduce even now," **********t Parikh, chairm­an, Integrated Research and Action for Development (IRADe) and former member of planning commission.

“The situation in the global oil market could turn worse from November when substantial production from Iran could vanish from markets in the wake of US sanctions.5 million barrels of oil per day, crude prices could hit 100 a barrel.Even last year, the centre reduced excise duty on the petrol and diesel by Rs 2 per litre in October.According to the oil ministry’s Petroleum Planning and Analysis cell, VAT and sales tax on petroleum products have increa­s­ed states’ kitty by Rs 1,84,091 crore in FY18 from Rs 1,66,378 in FY17.58 per dollar.“It is time the government thinks of bringing petroleum products under the GST regime to reduce high levels volatility