
Petrol, diesel become dearer; Oil cost to benefit
After months of dithering, the government on Thursday finally raised petrol price by Rs 2 a litre and diesel by Re one per litre with effect from midnight tonight.
The Cabinet Committee on Political Affairs, which took up the matter instead of the Cabinet Committee on Economic Affairs because of the political sensitivity of the issue when general elections are not far away, however, decided against lowering duties to cushion the impact of surging international oil prices.
"Petrol and diesel prices will be increased from midnight tonight," Petroleum Minister Murli Deora told reporters. The CCPA decided to raise the quantum of oil bonds to be issued to state-run oil retailers to partly compensate them for selling auto and cooking fuel below cost, he said.
Presently, 42.7 per cent of the under-realisation on petrol, diesel, LPG and kerosene is met by the government through issuance of oil bonds. This percentage has now been raised to 56-57, Petroleum Secretary MS Srinivasan said.
Government, in this financial year, will issue Indian Oil, Bharat Petroleum and Hindustan Petroleum oil bonds worth over Rs 40,212 crore at the enhanced rates.
Upstream firms like ONGC and GAIL would chip in 33 per cent (Rs 23,700 crore), while the remaining of the Rs 71,808 crore under-realisation would be borne by the retailers.
A Rs two per litre increase in petrol price would give Rs 180 crore a month additional revenue to public sector oil companies while Re one a litre hike in diesel would fetch Rs 360 crore a month.
"For the remaining part of the fiscal, we anticipate additional revenue of Rs 840 crore," Srinivasan said.

On cryptocurrency, Anurag Thakur says ‘innovation welcomed, must evaluate ideas’

Opted for continuity in deciding tax devolution to states: FC chairman N K Singh
- The 15th Finance Commission has recommended that states be given 41 per cent of the divisible tax pool of the Centre during the period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission.

From ITR to PAN-Aadhaar linking: Tax-related tasks to complete before March 31
- Here’s a list of some of the tasks which need to be performed by taxpayers before March 31

AirAsia CEO says company may launch flying-taxi business in 2022

Covid rescue plan clears hurdle as US economy shows gains

Muthoot Group chairman MG George passes away: All you need to know

A weak week for gold: Here's how the bullion fared

Centre, states need to discuss fuel taxes, says Sitharaman
- In an interaction with members of the Indian Women’s Press Corps (IWPC), Sitharaman said that consumer sentiment about the tax burden on auto fuel was understandable.

Reliance to bear the cost of covid shots for its staff
- Nearly 1.1 million vaccine doses were administered to people above the age of 60 and those in the 45-59 age group till Thursday.

Govt plans to scrap 6,000 compliances
- Mohapatra said the idea came during Modi’s meeting with Marriott International president and chief executive Arne Sorenson, who complained about the complex regulations in starting and running a hotel in India.

ICICI cuts home loan rates to a decadal low
- ICICI Bank’s move comes days after rival lenders such as State Bank of India (SBI), Kotak Mahindra Bank and Housing Development Finance Corp. Ltd cut their home loan rates.

Voting on corp resolutions compulsory for MFs: Sebi
- These votes will have to be disclosed to unit holders under existing regulations. Voting will be at the MF level (rather than scheme level).

Toyota SUV sales may skid on gaps in chipset supply
- Supply of vehicles from Maruti Suzuki India Ltd—as part of the alliance with Suzuki Motor Corp—has helped Toyota increase its domestic market share in the premium hatchback and entry-level SUV segment, where it was not present before.

Total factories in India grew by 2% in 2018-19
- The top three states by GVA were Maharashtra, Gujarat, and Tamil Nadu. They had a share of 41% in the total GVA. Rural India added nearly as much GVA (49%) as urban India (51%).

How do India’s fuel taxes impact the less affluent?
- Using average consumption shares to calculate the burden of an indirect tax has a problem.