The tax, which may come in form of a cess, will kick in the moment oil prices cross Dollars 70 per barrel, sources privy to the development said. And oil producers are now getting paid worldwide rates in dollar terms even when they produce oil from Indian fields.
One way the government is considering to reduce the pressure on consumers is by introducing a windfall tax on local oil producers, to be activated in case worldwide prices exceed US$70 a barrel.
The revenues so collected would be used to pay fuel retailers so that they absorb spikes beyond the threshold levels, reports added.
Petrol and diesel prices vary from state to state depending on the factors like VAT and local sales tax.
Boba Fett Movie Is A Go!
Deadline is reporting that the film is lagging behind box office estimates so far this weekend and might not turn a profit. Plot details for the new movie are unknown, and it's not clear if Daniel Logan or Temuera Morrison will return to the role.
Windfall tax is levied in some of the developed countries globally.
However, consumers can expect some relief as the Brent crude oil prices fell to around $78 from $80 per barrel on Friday. Upstream oil companies can not bear more given the burden of a 20% cess on crude, while reduction in duty will hit the exchequer.
Supermarkets have increased the price of petrol and diesel every day since the end of March, a new analysis shows. "The Union Minister is making such statements only to shrug off his responsibility", said Behera. For example, for one litre of petrol costing Rs 70 the Central and state taxes amounted to Rs. 36.30 and oil price came to only Rs. 33.70 = Rs. 70.
Since the time the hiatus ended on 14 May, rates have gone up by Rs2.84 a litre in case of petrol and Rs2.60 in diesel.
NFL's Terrance Williams' Lamborghini Crash Pics and Video
Williams told the officer he was at his home the "whole time" and Kendall Wright had taken the Lamborghini out at about 12:30 a.m. The police report states that Williams told the cops he was just "driving down the street and he fell" off his electric bike.
The dealers are asked to cut a part from their commissions and they will be reimbursed by the oil marketing firms.
The union minister said the central government had in October previous year reduced the excise on fuel by Rs 2 per litre keeping in view the interest of the poor people.
It has also worked out the math of the amount of taxes that are shared with states as part of the devolution formula and what goes to the exchequer. States may not be willing to allow that because taxes on fuel account for 11% of their overall tax revenue.
VENEZUELA: US envoy expelled in response to sanctions
Maduro said the expulsions were "in defense of the dignity of the homeland", and received a standing ovation from the crowd. Fourteen countries including Argentina, Brazil and Canada recalled their ambassadors from Caracas in protest.