Now Left props up oil price hurdle

In its view, the global price hike should be borne equally by the government, consumers and oil companies because the increase in tax and duties are proving to an additional burden on consumers and public sector oil companies.

The CPI(M) said it wanted the excise duty hike imposed in the last budget to be rolled back, and the additional road cess on petrol and diesel to be reversed for the year.

CPI(M) MP, Nilotpal Basu, said, ‘‘People are paying through the nose, while the Government is making a profit. The budget calculation has been made on a price of $US 39 a barrel, while it is currently at $US 65 a barrel. There is additional revenue accrual on the ad valorem account.’’

He said the Standing Committee on Petroleum and Natural Gas has analysed that almost the entire increase in petrol prices will be due to additional taxes, and not because of the global price hike, while for diesel it will be 70 paise.

The Politburo said that the government should accept the recommendations of the standing committee on a price stabilisation fund from the cess levied under the provision of Oil Industries and Development Act, which is not being used at present by the industry, and to withdraw the duty drawback incentive extended to private ‘stand-alone’ refineries.