EconomyTop News

India increases fuel taxes in a bid to shore up revenue

2 Mins read
imageEconomy6 hours ago (Mar 14, 2020 03:06AM ET)

India increases fuel taxes in a bid to shore up revenue

By Sudarshan Varadhan and Aftab Ahmed

NEW DELHI (Reuters) – India on Saturday increased taxes on petrol and diesel in a desperate attempt to increase government revenue at a time when tax collections have fallen amid the weakest economic growth in six years.

The excise duties on the fuels, which have been hiked by 3 rupees per liter, is expected to result in up to 400 billion Indian rupees ($5.42 billion) increase in revenue, a senior government official told Reuters.

Taxes on petrol and diesel, which account for more than a third of retail fuel prices, are one of the biggest sources of income for Prime Minister Narendra Modi’s government, which has more than tripled revenue from taxes on fuel since first coming to power in 2014.

India stopped controlling petrol prices in 2010 and diesel prices in 2014, linking them to global crude markets in a bid to ease pressure on government finances and improve the earnings of oil refiners.

Global oil prices posted their biggest week of losses since the 2008 global financial crisis, rocked by the coronavirus outbreak and efforts by top exporter Saudi Arabia and its allies to flood the market with record levels of supply.

The aggressive turnaround by Saudi Arabia, India’s top oil supplier, comes after Russia, the world’s second-largest producer, baulked on Friday at output cuts proposed by OPEC producers to stabilize falling prices caused by the economic fallout from the virus outbreak.

The national hike translates to a 4.8% increase in diesel prices, and a 4.3% hike in petrol prices in India’s capital New Delhi, compared with Friday’s prices. Fuel prices are not uniform across the country due to variable state taxes.

Petrol was sold at 70 rupees a liter, while diesel was sold at 62.74 a liter on March 13, according to state-run retailer Indian Oil Corp’s website.

India increases fuel taxes in a bid to shore up revenue

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related posts
Market OverviewTop News

Mass jailbreak in Afghanistan, at least 24 die in Islamic State attack

2 Mins read
World7 minutes ago (Aug 03, 2020 03:51AM ET) 2/2 (C) Reuters. Army vehicle patrols near the site of an attack on a…
StockTop News

Forex - Dollar Edges Higher, But More Weakness Likely

2 Mins read
Forex5 hours ago (Aug 03, 2020 03:06AM ET) (C) Reuters. By Peter Nurse Investing.com — The dollar has posted small gains in…
Market OverviewTop News

Lebanese foreign minister Hitti says he will resign today: report

1 Mins read
World1 hour ago (Aug 03, 2020 02:55AM ET) 2/2 (C) Reuters. Lebanese Foreign Minister Nassif Hitti speaks during a joint news conference…
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Leave a Reply

Your email address will not be published. Required fields are marked *