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The retail prices of diesel and petrol are the lowest in Delhi, among India’s key metropolitan cities. (Representational Images)The retail prices of diesel and petrol are the lowest in Delhi, among India’s key metropolitan cities. It isn’t cheaper to supply them to the national capital than in Chennai, Mumbai or Kolkata. The difference is that Delhi and Goa levy lower value-added-tax on petroleum products (PP) than poorer jurisdictions, even though they are havens for high-income residents.
But charity, they say, begins at home. And Delhi - the home of two governments and five municipalities - is the biggest beneficiary of a twisted application of this principle.State-level autonomy should be respected, but not to subsidise the better-off. Goa has the highest per capita gross state domestic product, followed by Delhi. Bringing petro products (PP) under a uniform Goods and Services Tax could ensure equity for consumers across state borders. Punitive tax rates on PP are desirable to slash consumption.We import 80 per cent of our PP requirement.
The net import of crude oil and PP (after subtracting earnings from export) accounts for 50 per cent of our merchandise trade deficit. This is an unsustainable Wood plastic crust foam screw barrel Factory draft on foreign exchange resources. Oil price fluctuations are a source of considerable volatility in the exchange rate of the rupee. This has knock-on negative effects on cross-border capital flows and the servicing of our external debt.In March 2018 the International Energy Agency said that "oil production growth from the United States, Brazil, Canada and Norway could keep the world well supplied, more than meeting global oil demand growth through 2020". We expected lower oil prices. But in May, US President Donald Trump decided that Iran — a major oil exporter — should be threatened with sanctions for alleged deviations from oversight constraints on its nuclear enrichment programme, agreed with the United States under former President Barack Obama.
India is particularly vulnerable to collateral damage on its energy security. This alone is sufficient to push us to use PP mainly for road freight. In addition, there is the global need to curb carbon emissions and the domestic imperative to reduce air pollution and road congestion in cities.Discriminatory taxes on the purchase of vehicles, graded by their carbon intensity and on fossil fuels - other than cooking gas and natural gas for meeting peak electricity demand - are socially desirable. Pricing diesel - an efficient but polluting fuel - the same as petrol can discourage its use for light passenger vehicles.
But charity, they say, begins at home. And Delhi - the home of two governments and five municipalities - is the biggest beneficiary of a twisted application of this principle.State-level autonomy should be respected, but not to subsidise the better-off. Goa has the highest per capita gross state domestic product, followed by Delhi. Bringing petro products (PP) under a uniform Goods and Services Tax could ensure equity for consumers across state borders. Punitive tax rates on PP are desirable to slash consumption.We import 80 per cent of our PP requirement.
The net import of crude oil and PP (after subtracting earnings from export) accounts for 50 per cent of our merchandise trade deficit. This is an unsustainable Wood plastic crust foam screw barrel Factory draft on foreign exchange resources. Oil price fluctuations are a source of considerable volatility in the exchange rate of the rupee. This has knock-on negative effects on cross-border capital flows and the servicing of our external debt.In March 2018 the International Energy Agency said that "oil production growth from the United States, Brazil, Canada and Norway could keep the world well supplied, more than meeting global oil demand growth through 2020". We expected lower oil prices. But in May, US President Donald Trump decided that Iran — a major oil exporter — should be threatened with sanctions for alleged deviations from oversight constraints on its nuclear enrichment programme, agreed with the United States under former President Barack Obama.
India is particularly vulnerable to collateral damage on its energy security. This alone is sufficient to push us to use PP mainly for road freight. In addition, there is the global need to curb carbon emissions and the domestic imperative to reduce air pollution and road congestion in cities.Discriminatory taxes on the purchase of vehicles, graded by their carbon intensity and on fossil fuels - other than cooking gas and natural gas for meeting peak electricity demand - are socially desirable. Pricing diesel - an efficient but polluting fuel - the same as petrol can discourage its use for light passenger vehicles.
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