Fuel cess in the pipeline to oil Delhi’s Metro wheels
Rajat Guha & Rajeev Jayaswal NEW DELHI DELHI may impose a special cess on petrol and diesel to raise money for expanding the Metro rail network in the Capital ahead of next year’s Commonwealth Games. The state government and central urban development ministry have accepted a proposal by the Delhi Metro Rail Corp (DMRC) to make consumers pay an extra Rs 2 and Re 1 per litre on petrol and diesel, respectively, from this June. The proposal is likely to be implemented after a new government is formed at the Centre, an urban development ministry official said, requesting anonymity. The third phase of the Metro rail construction in the national capital region (NCR) entails 100 km of track development at an estimated cost of Rs 15,000 crore. A similar cess was imposed in Bangalore to partly finance the metro rail there. A senior petroleum ministry official confirmed the development. “The ministry has no role as this is a state subject,” said the official, who did not wish to be named. But the petroleum ministry is against levying any cess on petrol and diesel as these are “(politically) sensitive fuels and the Centre determines their prices after weighing pros and cons” the official said. Petrol pump owners in the Capital had approached the Delhi government on Saturday to express their reservations against the move, said trade body Federation of All-India Petroleum Traders (FAIPT) secretary-general Ajay Bansal. “Informally, we have informed the state finance minister we would go on strike without giving notice if the cess is imposed (on petrol and diesel),” he said. There are 422 petrol pumps in the Capital. Delhi finance minister AK Walia, however, said he was not aware of any such development. “I have not met any dealer association.” Pump owners in Delhi, who have already lost about 30% diesel sales to neighbouring Haryana due to differences in state taxes, fear further loss if retail prices of petrol and diesel prices in the Capital rise more. Last June, Haryana reduced VAT on diesel from 12% to 8.8%. This made pump price of diesel in Delhi dearer by Re 1 a litre and bulk consumers of the fuel preferred to buy diesel from Haryana, which borders Delhi on three sides. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
