22 June 2010;timesofindia.indiatimes.com:NEW DELHI: You will have to shell out more for travelling in autos and taxis in the national capital with Delhi Government today hiking the fares for both modes of transport following increase in CNG prices. Making the announcement, Transport Minister Arvinder Singh Lovely said the minimum fare for autos will be increased from current Rs 10 (first one Km) to Rs 19 (for first two kms). Subsequently, per km fare after the first two km will be Rs 6.50 instead of current Rs 4.50. Lovely said apart from hike in CNG prices, the annual maintenance cost of autos has gone gone up by 70 per cent in last four years while the CNG prices have gone by 66 per cent during this period. The last auto fare hike was effected in 2007. Government has made it mandatory that all the autos will have to install Global Positioning System (GPS) within next six months, failing which permission will be cancelled. He said government will monitor the autos through GPS and ensure that they run on meters and do not harass commuters. Lovely said the minimum fare for yellow and black taxis will go up from Rs 15 to Rs 20 for first one km while the rate will be Rs 11 instead of current Rs 8.50 for subsequent kilometre. He said government will launch a new non-AC taxi service in which there will be flat rate of Rs 10 per kilometre. The government's move comes after autorickshaw unions threatened to go on a strike after the Centre decided to hike the CNG rate. They had been contending that since the price of the natural gas has been hiked five times in the past one year, they need a hike in the fare structure too. The CNG rate in Delhi has gone up by Rs 5.60 per kg - from Rs 21.90 to Rs 27.50 per kg. Officials of the Transport department held a meeting with the auto rickshaw unions to finalise the fare structure and also told them to make sure that auto drivers comply with metres after the fare hike.
22 June 2010;business-standard.com:New Delhi: While the Union government is yet to make up its mind on the freeing of petrol prices, it has written to the state governments to switch over to specific rates for value added tax on petrol and diesel instead of the current ad-valorem (percentage) structure. In an indication that the Centre may allow oil companies to increase the prices, it has suggested the change in order “to cushion” the impact of increase in international oil prices. In a recent letter to chief ministers, petroleum minister Murli Deora said a rise in the international oil prices exerts an upward pressure on domestic prices of petroleum products. “Ad-valorem rates of VAT imposed by the state governments further aggravates the impact of international oil prices on the consumer.” Interestingly, he has written to the chief ministers to switch to the specific rates even as the government is yet to take a decision on increasing the price of the two auto fuel. Any change in the VAT structure without any revision in retail selling price (RSP) does not mean anything if the states freeze the specific duty at the current level. The change will be a positive for consumers only if there is an increase in RSP after the change in VAT structure. Though it is expected that the Centre will allow its marketing companies to increase the price of petrol by around Rs 3, it may not go in for an increase in diesel prices. An empowered group of ministers, headed by Finance Minister Pranab Mukherjee, is expected to take a decision on it later this week or early next week. The government-controlled oil marketing companies are incurring a revenue loss of Rs 3.73 a litre on petrol, Rs 3.8 on diesel, Rs 18.82 on kerosene and Rs 261.90 on a LPG cylinder. Deora said the VAT rates were very high in most states. The VAT on petrol is as high as 33 per cent in Andhra Pradesh and on diesel it is 24.7 per cent in Kerala. An ad-valorem rate means a cascading impact when petroleum product prices are increased, since the taxation on the products also increases, rendering the product even more expensive. Though the Centre had done away with the ad-valorem component on excise duty on auto fuels completely when international petroleum prices peaked, it increased the specific duty on petrol and diesel by Re 1, imposed a 5 per cent customs duty on crude oil and hiked customs duty on petroleum products except LPG and kerosene by 5 percentage point. The excise duty on petrol and diesel is Rs 14.78 and Rs 4.74 a litre, respectively. The underrecovery on petrol in 2009-10 stood at Rs 5,151 crore while the underrecovery on diesel was Rs 9,279 crore. However, the excise collection from these products was much higher at Rs 21,075 crore (petrol) and Rs 21,537 crore (diesel). Deora pointed out in the letter that the some states are levying high VAT rates on a product like PDS Kerosene. Bihar, for instance, levies 12.5 per cent VAT on kerosene. The Centre does not levy any tax on PDS kerosene and domestic LPG.
Kia Motors set to roll out compact cars, hatchbacks, entry-level sedans on Indian roads
22 June 2010;timesofindia.indiatimes.com:Chanchal Pal Chauhan:NEW DELHI: Kia Motors, South Korea’s second-largest carmaker, is set to drive into the fast-growing Indian car market and build a facility here, a person with direct knowledge of the development said. The company, partly owned by South Korea’s largest carmaker Hyundai Motors, will bring in compact cars, hatchbacks and entry-level sedans initially and will expand into compact sports utility vehicles later, said the person requesting anonymity. Kia, known for its sleek but aggressively priced vehicles, is shifting its focus to Asia from its largest market Europe where demand is shrinking. “It is hunting for alternate markets after the 2008 financial meltdown,” the person said. When contacted, a Kia spokesman said the company was in very early stages of conducting a feasibility study into the possible entry into India. “We are still a long way from making any decision,” he said. The first person quoted, however, said Kia may launch its popular hatchbacks Picanto and Proceed, besides its top-selling sedans Forte and Rio. The sedans will be pitted against the segment leader Honda City while the small cars could be competing with Maruti Ritz and Hyundai i10. Kia will also roll out compact SUVs Soul and Sorento that would compete with the likes of Mahindra Scorpio and Maruti Suzuki’s Grand Vitara, said the person. Indian car sales grew 25% to touch 15.26 lakh units for the year ended March. With the economy booming, the car market is expected to continue its impressive run.
Deora asks states to lower sales tax on motor fuels
22 June 2010;timesofindia.indiatimes.com:NEW DELHI: Oil minister Murli Deora has asked state governments to lower sales tax (VAT) on motor fuels and switch to specific (fixed) duty structure from ad-valorem (percentage) regime rates. The move is being seen as an effort to check incremental increase in case the Centre frees up petrol pricing and raise diesel rates. "A rise in the international oil prices exerts an upward pressure on domestic prices of petroleum products. Ad-valorem rates of VAT imposed by the state government further aggravates the impact of international oil prices on the consumers,” Deora has written to chief ministers. In case of a price-hike, pump prices actually rise more than the quantum of revision due to incremental increase in local taxes that are levied as percentage of the price. Andhra Pradesh levies the highest sales tax of 33% on petrol in the country, followed by Tamil Nadu, where it is 30%. Kerala, which levies 29% VAT on petrol, has the highest sales tax rate for diesel at 24.69%. Puducherry has the lowest sales tax or VAT on petrol in the country at 15%, while Haryana and Punjab have the lowest rates for diesel at 8.8%. ‘‘VAT is levied by state governments on an ad-valorem basis, i.e., as a percentage of the price of the product. This means that when oil prices are high, the taxation on the products is higher, rendering the product even more expensive,” he said. “To address this issue, the ad-valorem component of the VAT can be converted into a specific component, at current levels,” he said. An Empowered Group of Ministers (EGoM) headed by finance minister Pranab Mukherjee is deliberating on freeing petrol and diesel prices from government control. If approved, petrol prices will go up by Rs 3.73 a litre and diesel by Rs 3.80 per litre. Without a price hike, state-owned oil firms stand to lose a whopping Rs 74,300 crore in revenues this fiscal. Deora said the central government had already done away with the ad valorem component of excise duty on petrol and diesel and the duty has been made specific. “Also, some of the states are levying high VAT rates on products like PDS kerosene, which needs to be looked into in view of its usage in lighting and cooking purposes by the common man,” he wrote.
21 June 2010;timesofindia.indiatimes.com:Dirty cars can pose serious threat to your health in warmer weather, reveals a new study. The findings revealed that motorists are at danger from germs like Bacillus cereus and Staphylococcus "each time they enter their car". Bugs linked with food poisoning, vomiting and skin infections were all discovered inside a "random" car when it was subjected to a range of tests. During the study, scientists analysed swabs taken from the car used by a couple and their two children and found Bacillus cereus and Staphylococcus bacteria inside, including on the steering wheel, gear-stick and door handles. Staphylococcal infections are contagious and can be transmitted from person to person. They can lead to skin infections and food poisoning. Bacillus cereus, a bacteria which forms spores that lie dormant until ideal conditions arise - such as warmth and a source of nutrition - can also be responsible for food poisoning. It can cause severe nausea, vomiting and diarrhoea. "Although many strains of bacteria are harmless, some can cause unpleasant illnesses," telegraph.co.uk quoted Anthony Hilton, reader in microbiology at Aston University, as saying. "People would be horrified at the prospect of eating from a toilet seat; however they ought to be aware that eating from a contaminated dashboard may represent the same health hazards. It is important, particularly now the weather is becoming warmer, for people to ensure they do not leave food debris in their cars as bacteria can thrive on even tiny crumbs. Also if you have animals in your car they can contribute to the presence of harmful micro-organisms," Hilton added. "Those who eat in their car should treat it as an extension of their home and maintain the same levels of hygiene as they would in their dining room," he said.
20 June 2010;business-standard.com:Mumbai:Carmaker General Motors India today said it will raise prices of its models by 2-3 per cent from next month due to rising input cost. "We will be increasing prices across all eight models by 2-3 per cent from July first week to offset rising input costs," General Motors India's Vice-President P Balendran told PTI here. "Prices of commodities like steel and rubber have risen sharply since the second quarter of last year. So, we have been forced to increase prices this time," Balendran said. Other leading carmakers like Toyota, Ford and Fiat also said that they are mulling a price-increase if commodity prices continue to rise at the current rate. Overall, commodity prices have gone up by 25 per cent in recent days. Car-makers have already hiked their prices thrice - first in January due to rise in input costs, second following a two per cent excise duty hike in the Union Budget and third after the introduction of new emission norms. "We are reviewing the situation this time and will take a call by this month-end. Commodity prices has gone up sharply in recent days," Toyota Kirloskar Motor's Deputy Managing Director (Marketing) Sandeep Singh said. Fiat India Automobiles' Chief Executive Officer Rajeev Kapoor also said that input costs have risen sharply in recent times. However, the auto major "has not yet decided on a price hike," he said. "The company is assessing the impact of the commodity price hikes. As of now we have not decided about a price hike," Ford India's Executive Director (Marketing and Sales), Nigel Wark, said. Maruti Suzuki India also echoed same view--"yes, commodity prices have gone up but we have not yet decided whether to hike our prices or not," the company's Assistant Manager (Corporate Communications), Harish Joshi, said. According to the Society of Indian Automobile Manufacturers, the total sales for all categories stood at 12,08,851 units in May as against 9,29,917 units during the year-ago period.
Petrolstop is a division of Car Fuel Info Solutions, LLC Petrolstop.com is a registered trademark owned by Car Fuel info Solutions, LLC Website Design by Onazari Technical Solutions
