03 July 2009;hindustantimes.com:Anupama Airy:New Delhi: In what could bring down consumer prices of petrol and diesel by up to Re 1 a litre, Petroleum Minister Murli Deora has asked all chief ministers to consider reducing sales tax rates on them. Current VAT (value added tax) rates applicable on petrol and diesel in states range anywhere between 10 and 33 per cent and depending on the level of reduction of taxes by states, prices could be reduced by up to Re 1 a litre on petrol and 50 paise a litre on diesel. The impact of sales tax levied on petrol and diesel can be seen from the fact that out of the Rs 4 per litre increase in petrol price, only Rs 3.33 per litre goes into the kitty of the oil companies while the rest goes as sales tax to the state governments. Similarly, against the retail price increase of Rs 2 per litre in diesel, oil firms would get only Rs.1.78/litre and the balance would go to the states. States levying higher sales tax like Andhra, Tamil Nadu, West Bengal, Maharashtra, MP, Rajasthan and Kerala can easily rationalise taxes to pass on the benefit to consumers. Deora told HT that he on June 23 wrote to all CMs, asking them to consider reducing taxes on petrol and diesel, especially in the wake of rising international oil prices, so that the impact of high crude prices on the consuming public can be capped. A similar communication, he said, was sent to the West Bengal finance minister, who is also chairman of the Empowered Committee of State Finance Ministers.
01 July 2009;dailypioneer.com:New Delhi:Days before the general budget, the government on Wednesday increased petrol and diesel prices by Rs four and Rs two a litre respectively effective midnight tonight, but spared kerosene and domestic cooking gas from a hike. "The hike was necessitated because of rising international crude oil prices which have doubled to USD 70 a barrel since December," Petroleum Minister Murli Deora told reporters here. The issue was not taken to the Cabinet, as is done generally, but Deora consulted party leadership and Prime Minister Manmohan Singh to decide on the hike. The decision would help garner Rs 13,000 crore this fiscal, although the oil companies were projecting a loss of Rs 39,000 crore before the hike. The decision comes ahead of the July 6 budget day. Parliament's budget session is to begin tomorrow and clearly the government wanted to take a decision before that.
01 July 2009;economictimes.indiatimes.com:Chanchal Pal Chauhan:NEW DELHI: Declining interest rates and easy availability of credit have increased the number of cars sold through loans by 15% in the past six Things to remember while purchasing a vehicle months. Around 70% of new cars sold now are financed through loans compared with 55% a year ago when loans became unattractive due to high interest rates and a credit crunch. The major push has come from PSU banks such as State Bank of India, the country’s largest bank, which has emerged as the second-largest disburser in the car finance business after HDFC Bank. PSU banks are offering car loans at 10% while private banks like HDFC, ICICI and Kotak Mahindra are offering them at 11.5-13%. Hyundai Motor India senior vice-president (sales & marketing) Arvind Saxena said, “It’s a big positive development. Easier finance will expand the car market and generate fresh demand. We are expecting healthy increase in car sales in the next few months.” In 2007, when the interest rate were in single digits, over 80% cars sold were financed and led to rapid rowth in car sales. Bankers say customers are milking the rapid fall in interest rates over the past six months and making fewer cash down purchases. “Though India was not impacted by the global economic downturn, the general improvement in sentiment has boosted the retail finance market. The low interest rate has prompted customers to go for loans instead of cash deals,” said HDFC Bank executive vice-president for auto loans, Ashok Khanna. According to five bankers and financiers ET spoke with, the percentage of cars sold on loans is likely to go back to the peak 80% after the Budget. “We have eased lending norms and almost doubled the dispersal funds for auto. There has been a huge rush of customers opting for the 10% fixed rate on auto loan,’’ a senior executive of SBI Bank said, requesting anonymity. This change comes almost a year after the government eased lending norms and pumped liquidity in the market to stimulate demand. Car sales grew 3.29% to 2.16 lakh units in April-May period over last year and the growth is likely to increase with several banks likely to drop interest rates in the near future.
30 June 2009;business-standard.com:New Delhi: For the fourth time in two months, state-run oil firms today hiked jet fuel or aviation turbine fuel (ATF) price by more than 6 per cent on firming international oil prices. Indian Oil, Bharat Petroleum and Hindustan Petroleum raised ATF price by Rs 2,306 to Rs 38,558 per kilolitre in Delhi effective midnight tonight, an IOC official said. The hike comes on back of over 12 per cent hike on June 15. ATF price on that day were raised by Rs 3,949 to Rs 36,252 per kilolitre in Delhi. International crude oil prices have firmed to a seven-month high of $72 per barrel on hopes of demand revival in US. The three state-run retailers had from June 1 raised jet fuel rate by an average of Rs 108 per kl, which came on the back of a 1.8 per cent hike in rates on May 16. In Mumbai, home to the nation's busiest airport, the rate will go up from Rs 37,367 per kl to Rs 39,789 per kl. The rise in ATF price, which constitutes 40 per cent of airlines' operating cost, may further put pressure on cash-strapped domestic carriers. No comments from any of the leading airlines were immediately available on the latest price hike. Jet fuel in Kolkata will be dearer at Rs 46,711 per kl from Rs 44,289 per kl, while in Chennai the price has been raised by Rs 2,500 per kl to Rs 42,524 per kl. ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August last year on international crude prices touching a historic high of $147 a barrel. But subsequently the rates had come down, slashed every month till October and twice a month from November. The three firms, which revise jet fuel rate every fortnight based on trends in international markets, had on April 16 increased ATF rate by about 6.7 per cent. This was followed by a marginal reduction in rates by one per cent on May 1.
30 June 2009;business-standard.com:New Delhi: Petroleum Minister Murli Deora, at the inauguration of Indian Oil Corporation's Golden Jubilee celebration, said LPG booking can soon be done through SMS. "Recently, we have formulated Vision 2015 in the area of marketing. The LPG coverage is available to about 50 per cent of our population currently. Under the Vision, it is to be extended to 75 per cent by 2015," he said. For this, the existing scheme of LPG distributorship will be supplemented by a new Scheme of LPG Gramin Vitrak. "Innovative approaches such as accepting bookings for LPG through SMS and providing 100 per cent LPG coverage in cities with more than 5 lakh population will be undertaken," he said. "Also, a road map for expanding CNG supplies to 200 cities is being devised," he said. Speaking on volatility in international oil prices, he said the price of crude oil had gone up to $147 per barrel in the month of July 2008 and was down to $35 towards the end of the year. Alongwith the volatility, was the challenge of economic downturn facing the whole world. "We, however, faced effectively the challenge of the global situation," Deora said.
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