Shri Murli Deora, Minister for Petroleum and Natural Gas has complimented the eight State Governments in general and their Chief Ministers in particular for accepting his request to forego the sales tax revenue on the increased amount of petrol and diesel prices which was effected on 5/6 June, 2006. The increase in the prices of petrol and diesel was necessitated owing to the unprecedented rise in international oil prices. Shri Deora in a communication to the Chief Ministers of Andhra Pradesh, Haryana, Tamil Nadu, Himachal Pradesh, Uttranchal, Maharashtra, Goa and Delhi, pointed out that the reduction in sales tax by these States is commendable and supplements efforts of the Government of India to keep the impact of spiraling world oil prices at the minimum level on Indian consumers. He also emphasized the need for other State Governments to consider taking similar steps.
The above mentioned State Governments reduced their sales tax rates in varying degrees which resulted in reduction of retail selling prices (RSP) of petrol and diesel in the respective States. The retail prices of petrol in these eight States have been reduced ranging from Rs.1.17 per litre to Rs.0.39 per litre. Similarly, the retail prices of diesel were reduced in the range of Rs.0.58 per litre to Rs.0.21 per litre.
The Government of India on its part has decided to share a major part of the burden by issue of oil bonds worth Rs.28,300 crore. In addition, the oil PSUs would be sharing a significant part of the burden during 2006-07, which together with the Government of India account for about 84% of the impact of steep rise in international oil prices. With these steps, it was possible to keep the prices of LPG and Keorsene unchanged while the increase in prices of petrol and diesel have been kept at the minimum level possible.
RCJ/UB
(Release ID :18635)