Falling international prices will help government not to raise petroleum product prices from July 1
The main aim of IMF has been that government’s deficit should be curtailed and heavy subsidies would not be given
Imf recently propose to impose a sales tax and PL just to shore up revenues
Falling international crude oil price from its high indicates there is no need for PL and sales tax from July 1
US crude oil falls by 14% and Brent by 12% from its high
If we imply a 10% fall from ex-refinery price has room to go down by Rs 22 per liter
This proves our stance that without increAsing the petrol and diesel prices the govt could easily collect sales tax and PL from present petrol and diesel prices
Keeping product prices unchanged to help cool inflation
Last ex-refinery price of petrol 220 rupees as of June 15
The selling price was 234 which includes Rs 14 as margins of dealers and OMC
Govt raises the petrol price by Rs 24 per liter