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Kerosene, LPG prices lowest in India: Govt

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Posted: Aug 06, 2009 at 1453 hrs IST

New Delhi Kerosene and domestic LPG prices in India are the lowest in South Asia, while the rates for petrol and diesel are comparable with its neighbours, Petroleum Minister Murli Deora said on Thursday.

In a written reply to a question in the Lok Sabha, he said kerosene at Rs 9.22 per litre in Delhi is the cheapest cooking fuel in South Asia.

Kerosene in Pakistan costs Rs 34.89 a litre, Rs 30.53 in Bangladesh, Rs 21.26 in Sri Lanka and Rs 34.35 per litre in Nepal.

Similarly, a 14.2 kg domestic LPG cylinder in Delhi priced at Rs 281.20 is cheaper than Rs 483.06 in Pakistan, Rs 670.12 in Bangladesh, Rs 666.31 in Sri Lanka and Rs 702.72 per cylinder rate in Nepal, he said.

Petrol at Rs 44.63 in Delhi is costlier than Rs 36.52 a litre price in Pakistan but cheaper than Rs 51.36 a litre price in Bangladesh, Rs 54.19 in Sri Lanka and Rs 34.35 a litre in Nepal.

Deisel at Rs 32.87 per litre in Delhi was a shade higher than Rs 30.53 rate in Bangladesh and Rs 30.43 a litre price in Sri Lanka. But it was cheaper than Rs 36.82 a litre price in Pakistan and Rs 34.35 per litre rate in Nepal, he said.

"It may, therefore, be seen that whereas prices of PDS kerosene and domestic LPG in India are the lowest, prices of petrol and diesel are quite comparable to the neighbouring countries," he said adding prices differ because of tax rates.

Deora said as the costs of primary raw material - crude oil are more or less uniform internationally, the rate of taxation in a country plays an important role in determining the retail price of petroleum products.

"Taxes and duties of the Centre and state governments constitute 48.4 per cent and 24.5 per cent of the retail prices of petrol and diesel respectively at Delhi," he said.

States sales tax or VAT on petrol varies from 18 to 33 per cent and from 8.80 to 26 per cent on diesel.

"The Central Government on its part, has written to the chief ministers of all the state governments and the Finance Minister of West Bengal (who is the Chairman of the Empowered Committee of State Finance Ministers) recently, requesting them to rationalise sales tax/VAT on petrol and diesel so as to reduce the incidence of tax on oil prices," he said.

Of the Rs 44.63 a litre retail selling price of petrol in Delhi, Rs 13.75 is because of the incidence of excise duty and Rs 7.44 a litre due to sales tax. Similarly, the Rs 32.87 a litre price of diesel in Delhi is made up of Rs 3.90 in sales tax and Rs 3.71 in excise levy.

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Kerosene, LPG prices lowest in India: Govt by Balakrishnan K on 05 Jul 2010

The trick is he has compared the Rupee figure directly with neighbouring countries. INR rupee is of more value compared to the neighbour Asian countries. The above comparison statistics itself is a wrong statement, better to reduce the ST, ED, State government taxes.

wow thats great by Indian on 07 Aug 2009

can you also tell the highest amount in the Swiss bank account by your leader?

maintain equity by susheel on 07 Aug 2009

BEING A CRITICAL RESOURCE FOR DAY TO DAY ENERGY NEED OF ALL THE CROSS SECTIONS OF SOCIETY THE PRICES OF ALL FUELS SHOULD BE KEPT SAME THROUGHOUT INDIA. AS THE FUEL/ENERGY IS A COMMODITY CONTROLLED BY UNION GOVT., WHY A PERSON IN CHENNAI OR MUMBAI SHOULD BAY 4-8 RUPEES MORE FOR A LITRE OF PETROL OR DIESEL OR LPG THAN A PERSON IN DELHI. ALLOWING SUCH INEQUITY IS A VIOLATION OF FUNDAMENTAL RIGHT OF EQUALITY BEFORE A STATE.IF THE EARNINGS OF CENTRAL/STATE GOVTS. ARE STUDIED MORE THAN ONE THIRD IS EARNED BY ALL THROUGH DUTIES LEVIED BY CENTRE AND THEN BY STATES ON FUELS. THIS SHOULD STOP IMMEDIATELY AND SIMILAR COSTS SHOULD BE MAINTAINED THROUGHOUT THE COUNTRY AND TO MAKE UP THIS REVENUE LOSS THE INFLUENTIAL SECTION OF SOCIETY EARNING MORE THAN TEN LAKHS A YEAR(DATA AVAILABLE FROM PAN/IT) FROM SHOULD BE CHARGED 10 RUPEES MORE FOR A LITRE OF PETROL AND SIMILARLY FOR OTHER FUELS.THE PRESENT SYSTEM IS RIDICULOUS THAT A AUTORICKSHAW DRIVER OR A CORPORATE GIANT PAYS SAME MONEY FOR FUELS

Murli Deora by Raj Thackrey on 06 Aug 2009

Another comparison trik to fool the ignorant people. Why does not this person giving statistics also compare the average income per person in the entire south asia, may be he should also use his peanut size brain to investigate that.

Right first time by Kalidas M on 07 Aug 2009

Tell you what, for a sweet change, you are beginning to make sense. This Murali has already amassed a huge wealth during his short spell as Petroleum Minister. And now he too, is starting a dynasty of his own. These cunning buggers need to soaked in their portfolio products and handed over to the public. These Congressis love the Pakis for any reason whatsoever, am I correct? This time for comparison, which is absolutely out of context and absurd. For all I know, they still may be using firewood and not LPG.

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