In the present financial year 2021-2022, the government has increased the price of petrol 39 times and decreased once, while the diesel price was increased 36 times and decreased twice. In 2020-2021, the price of petrol was raised 76 times and reduced 10 times and that of diesel increased 73 times and decreased 24 times.
Nevertheless, the Finance Minister Nirmala Sitharaman says that she would not be able to slash excise duties anytime soon quoting the load of UPA-era oil bonds. She declared that the Union government has to assume the liability of payments in lieu of oil bonds issued by the UPA government to subsidize fuel prices and a substantial amount of money is going for interest payment and principal settlement.
The truth is even the NDA government under Atal Bihari Vajpayee also issued oil bonds. So if finance minister continues singing the same song and blame UPA government for oil bonds load, surely the math does not bear out her. Rather she should try to reach out States and make a sincere effort to include all petroleum products in the GST ambit.
The price of petrol and diesel has sustained at record high and people across the country are experiencing its pinch. Nevertheless, the Finance Minister Nirmala Sitharaman recently mentioned that she would not be able to slash excise duties on prices of petrol and diesel anytime soon quoting the load of UPA-era oil bonds. Of late, she declared that the Union government has to assume the liability of payments in lieu of oil bonds issued by the UPA government to subsidize fuel prices and a substantial amount of money is going for interest payment and principal settlement.
In India, the cost of a liter of petrol or diesel has three elements - the base price of the fuel, the excise duty imposed by the Union government, a dealer’s commission, and the VAT imposed by states. VAT is one of the only sources of income for states, as it doesn’t fall into the ambit of GST and doesn’t go into the Consolidated Fund of India.
Like other debt bonds, oil bonds are debt instruments issued to investors or lenders when the government, or corporate entities, borrows money for a specified tenure of time at a fixed interest rate. Basically, bonds are securities offered by borrowers to lenders comprising particulars of any loan obtained and an assurance to repay them. Precisely, oil bonds are unique kinds of bonds that are issued to OMCs namely Indian Oil, Hindustan Petroleum and Bharat Petroleum. These entities have received oil bonds from the government in lieu of cash grants.
Continue reading your story on the app
Continue reading your story in the magazine
Some Unfortunate Truths About Investing
Importance Of Investing
“We've a Lot of Surprises in Store for Investors”
FACE TO FACE DISCUSSION
Raghav Productivity Enhancers Ltd. World's Largest Manufacturer of Silica Ramming Mass
“We aim to be a futuristic company maintaining the global player tag that we have”
It's True, Globalism is anti-democratic
Globalist elites don’t trust you to make the right choice
Rich or Poor
Poverty or Wealth Is A State of Mind.
5 Glittering Stocks for Samvat 2078
Samvat 2077 has been exceptionally well for the equity market. However, Samvat 2078 will be little subdued but these five stocks will add spark to your portfolio.
Will ‘Bad Bank' Craft Good Banks?
Finance Minister, Nirmala Sitharaman has, at last acted upon one of her many announcements during the 2021 Budget presentation, by declaring the creation of India’s first-ever ‘Bad Bank. It will acquire all the NPAs of a bank at a price that is below their book price. It then will work to recuperate and turn around the assets by way of expert management, sale, or restructuring. How effective would be bad bank to solve the mega problem of NPAs? Shivanand Pandit answers this big question.
“GVFL has been at the forefront of ‘Atmanirbhar Bharat' long before the word was coined”
There are a lot of disruptions happening in the entire segment of the economy in these critical times. Please elaborate the kind of crises you faced and what has been the impact of Covid and lockdown?
RAFT MOTORS Revolutionizing the EV Segment
Raft Motors is a new entrant in the Electric Vehicle segment, however, with ever-increasing dealership nodes in major towns, it is fast emerging as one of the industry leaders with innovative products and advanced engineering skills.
KIOCL Limited Despite Lockdown Registered Spectacular Financial Performance
KIOCL Limited, (Previously known as Kudremukh Iron Ore Company Ltd.), a Flagship Company under the Ministry of Steel, was formed in 1976 for mining and beneficiation of low-grade iron ore at Kudremukh, at Chikkamagaluru district of Karnataka. The Company was conferred with Mini Ratna status in 1999. The country’s prestigious Export Oriented Unit (EOU) has its Pelletisation Complex and Pig Iron Complex (Blast Furnace Unit) at Mangalore and engaged in the business of manufacturing high quality Iron Ore Pellets for export and domestic market and supply of foundry grade pig iron in domestic market.
CHANGE IS THE ULTIMATE CREATIVITY
UPAMA RAJASEKHAR is a Brighter Minds facilitator. Here, PURNIMA RAMAKRISHNAN meets with her and some of the children she facilitates in the program, to learn firsthand about their experiences.
I Measured My Brain Performance. Here's Why You Might Do the Same.
I'm sitting on a leather couch in an unassuming warehouse in Denver. There's a Ping-Pong table behind me, but I'm not at a party—I'm having my brain scanned.
Free Your Pelvis to Find Your Best Twist
One day when I was practicing Upavistha Konasana (Wide-Angle Seated Forward Bend), I stretched to one side. I firmly anchored my pelvis, keeping my sitting bones on the floor, then I twisted toward my left leg and reached for my left foot with both hands.
Rosaiah, ex-CM & a man for all seasons, passes away at 88
Congress leader Konijeti Rosaiah passed away
अखिलेश का दावा, यूपी में बनेगी सपा सरकार, योगी बोले- तय करेगी जनता
अखिलेश से कड़वाहट के बाद मुलायम से मिले राजा भैया
SC: Is govt willing to put a life ban on convicted netas?
In its more than a decade long tryst with the issue of decriminalisation of politics and after passing several orders to bring perceptible changes in polity, the Supreme Court on Wednesday appeared to have reached a dead end over a year-old plea for imposing a life ban on convicted netas from contesting polls.
Tewari's book stirs row on 26/11 terror response of UPA
CONGRESS leader Manish Tewari triggered a controversy on Tuesday by questioning the erstwhile United Progressive Alliance (UPA) government’s response to the 26/11 Mumbai terror attack.
सपा-रालोद में गठबंधन,36 सीट पर सहमति
अखिलेश और जयंत के बीच दो घंटे चली बैठक, रालोद के 30 और सपा के सिंबल पर छह उम्मीदवार होंगे
Interest payment a surging burden
Govt pays ₹3.64 L cr as interest out of its total revenue expenditure of ₹313.97 L cr till Sept 21
T Congress to enroll 30 lakh members before January 26
The Congress party has set a target of enrolling at least 30 lakh members into the party through the digital mode before January 26.