Finance Minister Shri Arun Jaitley explains the economics of petroleum prices and how they are managed taking into account interest of all stakeholders, especially the consumers’ interest.
• As part of the clear policy of the present government, one part of the fall in international prices goes to the consumers first. Petrol prices have been reduced 20 times and diesel prices 16 times so far.
• Second part goes to the developmental activities, particularly national highway and rural roads.
• Third part is consumed by the states by way of VAT apart from 42% of central government taxes that is also passed on to states.
• The remaining part goes to the oil companies to compensate for the huge losses they suffer on their past purchases at higher prices.
As a result of this fiscal planning, India will be able to achieve fiscal deficit target without making any cuts from the grants to given to states or ministries for various social sector program for the first time.
• As part of the clear policy of the present government, one part of the fall in international prices goes to the consumers first. Petrol prices have been reduced 20 times and diesel prices 16 times so far.
• Second part goes to the developmental activities, particularly national highway and rural roads.
• Third part is consumed by the states by way of VAT apart from 42% of central government taxes that is also passed on to states.
• The remaining part goes to the oil companies to compensate for the huge losses they suffer on their past purchases at higher prices.
As a result of this fiscal planning, India will be able to achieve fiscal deficit target without making any cuts from the grants to given to states or ministries for various social sector program for the first time.
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