Updated Feb 20, 2021 | 14:41 IST
Petrol has crossed Rs 100 mark in several cities and it is nearing Rs 100 per litre in several other cities across the country on the back of international crude price hike Centre and state should talk to bring down retail fuel price at a reasonable level, says FM Sitharaman
New Delhi: Fuel prices have been surging in the country for neary two weeks now and there seems to be no respite for the common man. Petrol, diesel prices in India went up for the 12th straight day on Saturday (February 20). A day after the price of regular petrol crossed the Rs 90 mark for the first time in Delhi and diesel prices too shot past Rs 80, rates were both auto fuels were hiked 38 paise and 37 paise respectively.
Petrol and diesel price rise went on the pause mode on Saturday after two consecutive days of sharp increase where pump price of the auto fuels rose by 65 paise per litre.
It’s set to be a slow crawl back to pre-virus levels for Indian energy demand with diesel, the most-used fuel, holding back the recovery. While demand for diesel, which accounts for around 40 per cent of Indian fuel use in a normal year, rebounded quickly after the the world’s biggest lockdown was imposed in March, the recovery has since slowed. The annual growth rate for diesel consumption won’t get back to pre-virus levels until the year ended March 2022, said Mukesh Kumar Surana, chairman of Hindustan Petroleum Corp. Used in factories, construction and agriculture as well as powering the truck and bus fleets, diesel is a bellwether of industrial activity in India and its tepid recovery reflects an economy still struggling to shake off the crippling effects of the pandemic. Gasoline demand, by contrast, is being buoyed by people opting to use private cars and motorcycles to avoid being exposed to Covid-19.
Weak diesel demand signals a slow rebound for industrial India
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Weak diesel demand signals a slow rebound for industrial IndiaBy Saket Sundria and Debjit Chakraborty, Bloomberg
Last Updated: Jan 29, 2021, 01:38 PM IST
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Synopsis
Used in factories, construction and agriculture as well as powering the truck and bus fleets, diesel is a bellwether of industrial activity in India and its tepid recovery reflects an economy still struggling to shake off the crippling effects of the pandemic. Gasoline demand, by contrast, is being buoyed by people opting to use private cars and motorcycles to avoid being exposed to Covid-19.
Agencies
Greater use of fuels like liquefied natural gas and compressed natural gas in transport means diesel is unlikely to be as dominant in the Indian energy mix as it was before Covid-19.
Clauses regarding TDS
Meanwhile, the All India Motor Transport Congress (AIMTC) has asked for a favourable consideration on two clauses regarding tax deduction at source (TDS) for transporters, according to Kultaran Singh Atwal, President, AIMTC. Transport is a cash-heavy business, and transporters have to pay 2 per cent TDS on transactions of over ₹1 crore. So, they would like to be exempted from this, like agriculture produce marketing companies.
Also, a lot of customers of transporters deduct 2 per cent tax at source and do not pass it on to government, which means transporters cannot even claim such refunds, explained Naveen Gupta, Secretary General. AIMTC, adding that refunds are received after almost three years, which blocks working capital. A relaxation on this issue of “