New Delhi (Reuters)-India may cut taxes on crude oil and refined next year's budget, said the Finance Secretary Wednesday, cushion the impact of rising oil prices on global inflation, profits of oil companies.
"All of these issues on what should be considered mandatory structure until the budget," baapala Chawla Ashok told reporters, adding if required, the budget can be corrected in debts.
The Government is already under attack from resistance over some of scandals, corruption and the rising of essential goods, you may want to cut taxes on retail prices to help counter the impact of increased fuel costs and avoid anger encouragement.
Fuel prices were deregulated in June but the Government still governs the price of diesel oil and liquid gas (LPG TANKERS) – fuel sources for key transport and cooking among the population of 1.2 billion in India, many of whom live under $ 1.25 a day.
Delhi, taxes account for about half the fuel prices, a third of diesel prices.
Annual inflation in November title 7.48 context, the lowest level percentage his year, but the Central Bank of India has a global commodity prices remain high on the threat of inflation.
The State-owned oil companies marketing increased fuel prices again recently, if the Government hikes prices too, he is liable to diesel compromise Bank reserve target late March's inflation of 5.5 percent.
Diesel fuel accounts for a third of the total demand in the country and the price pressures from walking transmitted normally costs diesel wider economy through the transport sector.
Batkciv of this year the Federal Government to restore the crude oil import tax 5 percent and raised taxes on the factory gate and import duties on diesel fuel.
Chawla said that the Government was willing to compensate for companies marketing third State-run oil of their income losses on the sale of refined products of the current year budget prices, fewer estimates fiscal Secretary Oil s. Sundareshan at least 50 percent.
June, the Government of India has ended curbs and fuel prices the prices of diesel, cooking gas, oil. Changes provoked protests against the coalition Government which, led by the Congress Party.
Indian oil companies last week has been raised fuel prices to 5.6 percent, as crude-oil floating near annual highs, Ministers meet on 30 December, consider increasing the prices of cooking gas vdizl.
Sundareshan said two losses revenue in each of the marketing companies-Indian Oil Corp, Hindustan petroleum and petroleum industries – fuel sales were evaluated in the current fiscal 660 billion rupees (14.6 billion).
Cylinder 14 kilograms of cooking gas now sold rupees 345.35, 275 rupees below estimate what oil companies is a market price, at the time of the sale of liter diesel in rupees suffer losing income membership 37.71 6.50 rupees.
Sundareshan said previously that the Government will pass only a portion of revenue losses on diesel sales to consumers.
Increasing diesel and LPG TANKERS oil companies will protect their margins.
Diesel petrol has a weighting of 4.67 percent and 1.09 percent, respectively, the wholesale price index (WPI), a measure of inflation central India, and raising the gas prices have affected knock-on like farmers manufacturers move costs throughout.
Create a carrying a weighting of 0.91 percent.
(Writing by Nidhi Verma; editing by Aradhana Aravindan)
