Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: articles on VAT and GST in India :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: cpt :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: TDS :: VAT Audit :: ACCOUNTING STANDARD
 
 
« General »
 Confusion over GST persists: Wholesale grain market affected, sales fall by 40 percent in Pune
 Slow tax growth reflects companies' GST troubles
 What is PAN card? Why is it important?
 Govt to cut down executive discretion on tax laws
 Businesses can start filing July returns on GSTN from August 5
 Are you earning abroad? Know the tax rules
 Attention last minute tax filers! Know about key changes made by govt this year
 Accounting relief for IndAS companies
 How you can reduce your tax to zero if you have income within Rs 10 lakh
 NRIs’ overseas bank info needed only for tax refund
 Non-performance: I-T dept transfers 245 commissioners

Petrol may cost Rs 5 more
May, 31st 2008

The Cabinet headed by Prime Minister Manmohan Singh may meet on Friday to consider raising petrol and diesel prices among other measures to bail out state-run firms that have been reeling under unprecedented high crude prices.

With Indian Oil, Hindustan Petroleum and Bharat Petroleum projected to lose Rs 200,000 crore in revenues on sale of petrol, diesel, domestic LPG and kerosene below import cost, industry sources said a hike in the range of Rs 2 to 5 per litre appears on the cards.

Petroleum Minister Murli Deora on his part neither denied nor confirmed Cabinet being scheduled for tomorrow.

"We are discussing all possible measures to help and protect our public sector oil companies... some remedial measures need to be taken (urgently)," he told reporters.

The three firms are currently losing Rs 450 crore in revenues on fuel sales every day. Petrol is being sold at a loss of Rs 16.34 a litre, diesel at Rs 23.49 per litre, LPG at Rs 305.90 per cylinder loss and kerosene at a discount of Rs 28.72 per litre.

Deora has called a meeting of heads of the oil PSUs tomorrow morning and after that may brief the Cabinet of the financial strain on the companies in view of international crude prices topping 135 dollars a barrel.

"I cannot rule in or rule out anything at this stage," Deora said when asked if petrol and diesel prices hike was an option under consideration.

"We are concerned at the financial health of the PSUs," he said, but asked the consumers not to panic.

"There is no rationing of fuel as has been reported by one newspaper. We can never resort to such an anti-consumer practice. I have spoken to BPCL Chairman Ashok Sinha who has categorically denied such a move," he said.

Deora said state-run retailers IOC, BPCL and HPCL were under severe financial strain and may have taken some measures to cut cost but fuel rationing was not being resorted to.

"I would like to plead with the public and consumers that there is no such move," he said. "Government is at work trying to solve the problems being faced by PSUs. There are some measures that are under discussions."

"Our PSUs have done great service to the nation. Besides making available auto and cooking fuel to every nook and cranny, they have also been selling at a price lower than the cost. This has caused some constraint and we are concerned about it," he said.

In Asian morning trade on Thursday, New York's main oil futures contract, light sweet crude for July delivery, rose to a high of USD 135.04 a barrel before easing to USD 134.87. The three firms are faced with a huge liquidity crunch and are borrowing Rs 3,500 crore a month to meet day-to-day expenditure. Borrowings of the three firms have reached Rs 65,000 crore.

Government's bar on oil firms from raising fuel prices despite cost of raw material (crude oil) doubling to over 135 dollars a barrel, is likely to see the three firms end the current year with a revenue loss of Rs 2,00,000 crore. Last year, the revenue loss was Rs 77,304.50 crore.

Government makes up for just over half of the under realisation of oil companies on fuel sales through issuance of oil bonds, while 33 per cent of the losses is compensated by companies like ONGC and GAIL. The rest is to be borne by the retailers.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions