Finance

Over Rs 1.5 lakh cr UPA-era oil bonds should be repaid: Petroleum Minister

Amid gas costs persevering with to stay stubbornly excessive regardless of worldwide charges falling, Petroleum Minister Hardeep Singh Puri on Thursday mentioned over Rs 1.5 lakh crore of oil bonds issued by the earlier UPA authorities stays to be paid, limiting fiscal house and proscribing monetary freedom of oil corporations.

A day after Congress chief Rahul Gandhi launched a scathing assault on the federal government for elevating cooking fuel costs, Puri took to Twitter accountable the “rampant impunity and coverage paralysis” of the UPA authorities.

“In ‘India’s Misplaced Decade’ recognized for rampant impunity & coverage paralysis, UPA Govt saddled future govts with Oil Bonds. Greater than Rs 1.5 lakh cr of those stay to be repaid, thus tying up essential assets, limiting fiscal house & proscribing monetary freedom of OMCs,” he tweeted.

Puri, a 1974 batch Indian Overseas Service officer who served because the Everlasting Consultant of India to the United Nations from 2009 to 2013, mentioned the exploration and manufacturing (E&P) sector was “fund-starved”.

“The vital E&P sector was fund-starved. Consequently, our import invoice continues to be excessive. Almost Rs 3.6 lakh cr income of oil corporations was as an alternative used for value stabilisation by a distant managed govt of ‘financial consultants’ to cover behind a ‘All is Effectively’ smokescreen,” he tweeted.

On Wednesday, Gandhi had attacked the federal government over the rising gas costs saying Rs 23 lakh crore has been collected within the final seven years by growing costs.

His celebration rejected the oil bond burden concept, first floated by Finance Minister Nirmala Sitharaman, for not reducing the costs, saying the Rs 1.3 lakh crore should not even due for fee to this point and the federal government had collected way more income in seven years from excise responsibility hikes.

Final month, Sitharaman had dominated out a reduce in excise responsibility on petrol and diesel to ease costs, saying funds in lieu of previous subsidised gas pose limitations.

Petrol and diesel in addition to cooking fuel and kerosene have been offered at subsidised charges in the course of the earlier Congress-led UPA authorities. As an alternative of paying for the subsidy to carry parity between the artificially suppressed retail promoting value and the associated fee that had soared due to worldwide charges crossing USD 100 per barrel, the then authorities issued oil bonds totalling Rs 1.34 lakh crore to the state-fuel retailers.

These oil bonds and the curiosity thereon are being paid now.

Of the Rs 1.34 lakh crore of oil bonds, solely Rs 3,500 crore of principal has been paid and the remaining Rs 1.3 lakh crore is due for reimbursement between this fiscal and 2025-26, she had mentioned on August 16.

The federal government has to repay Rs 10,000 crore this fiscal yr (2021-22). One other Rs 31,150 crore is because of be repaid in 2023-24, Rs 52,860.17 crore within the following yr and Rs 36,913 crore in 2025-26.

Nonetheless, the collections from the hike in excise responsibility far exceed the quantity attributable to be paid to grease corporations.

Excise responsibility on petrol was hiked from Rs 19.98 per litre to Rs 32.9 final yr to recoup acquire arising from worldwide oil costs plunging to multi-year low as pandemic gulped demand.

Minister of State for Petroleum and Pure Gasoline Rameswar Teli had in July advised Parliament that the Union authorities’s tax collections on petrol and diesel jumped by 88 per cent to Rs 3.35 lakh crore within the yr to March 31 from Rs 1.78 lakh crore a yr again.

Excise assortment in pre-pandemic 2018-19 was Rs 2.13 lakh crore.

The hike in taxes final yr didn’t lead to any revision in retail costs as they acquired adjusted towards the discount that was warranted due to the autumn in worldwide oil costs.

However with the demand returning, worldwide oil costs have soared, which have translated to file excessive petrol and diesel costs throughout the nation. Greater than half the nation has petrol at over Rs 100-a-litre mark and diesel is above that stage in Rajasthan, Madhya Pradesh and Odisha.

The charges didn’t come down when worldwide oil costs fell from USD 77 a barrel to below USD 65. Petrol and diesel costs have been reduce by just a few paise per litre whereas LPG charges have been hiked by Rs 190 per cylinder since July.

Credit score – Monetary issues

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