Bhopal: Madhya Pradesh Chief Minister Shivraj Singh Chouhan today (13 October 20`17) announced the decision to reduce the VAT rate on diesel and petrol.
The Chief Minister further announced that the additional surcharge of Rs. 1.50 per litre charged on diesel also has been abolished.
The new rates will come in effect from midnight today. The diesel being sold at the rate of Rs. 63.31 per liter will be sold at Rs. 59.37 per liter after midnight.
Chouhan said that this decision for reduction in diesel and petrol rates has been taken to give relief to the common people and the farmers keeping in view their requirement. He said that the reduced rates of diesel and petrol will reduce the cost of freight and the goods will become cheaper.
The Chief Minister said that VAT on diesel has been reduced by 5 percent and additional surcharge of Rs. 1.50 charged on diesel has also been abolished. Similarly, VAT on petrol has been reduced by 3 percent.
New Delhi: On the first anniversary of his government, Prime Minister Narendra Modi on Tuesday said our objective is to transform quality of life, infrastructure and services. He also gave the assurance to the people that the goal is to “build the India of your dreams and that of our freedom fighters.”
In a letter to the people to mark his one year in office, the PM has said: “We assumed office at a time when confidence in the India story was waning. Un-abated corruption and indecisiveness had paralyzed the government. People had been left helpless against ever climbing inflation and economic insecurity.”
Stressing that urgent and decisive action was needed, the Prime Minister said runaway prices were immediately brought under control. The languishing economy was rejuvenated, building on stable, policy-driven proactive governance. Discretionary allotment of our precious natural resources to a chosen few was replaced with transparent auctions. Firm steps were taken against Black Money, from setting up an SIT and passing a stringent black money law, to generating international consensus against the same.
Uncompromising adherence to the principle of purity, in action as well as intent, has ensured a corruption-free government Modi has stated in his letter adding significant changes have been brought about in work culture, nurturing a combination of empathy as well as professionalism, systems as well breaking of silos. State governments have been made equal partners in the quest for national development, building the spirit of Team India. Most importantly, we have been able to restore Trust in the government, he has pointed out.
The PM has underscored the achievements of his government by stating that guided by the principle of Antyodaya, his Government is dedicated to the poor, marginalized and those left behind. He has further said in his letter: ‘We are working towards empowering them to become our soldiers in the war against poverty. Numerous measures and schemes have been initiated – from making school toilets to setting up IITs, IIMs and AIIMS; from providing a vaccination cover to our children to initiating a people-driven Swachh Bharat mission; from ensuring a minimum pension to our labourers to providing social security to the common man; from enhancing support to our farmers hit by natural calamities to defending their interests at WTO; from empowering one and all with self attestation to delivering subsidies directly to people’s banks; from universalizing the banking system to funding the unfunded small businesses; from irrigating fields to rejuvenating the Ganga River; from moving towards 24×7 power to connecting the nation through road and rail; from building homes for the homeless to setting up smart cities, and from connecting the North-East to prioritizing development of Eastern India.
In another letter to the people on economic issues, the PM said:
One year ago, you had entrusted me with the task of building a new India and putting a derailed economy back on track. We have achieved a lot. Economic growth has been revived, and is among the fastest in the world. Inflation is substantially down. Fiscal prudence has been restored. Confidence is up. Foreign investments have increased. This positive outlook is endorsed by major rating agencies and international institutions across the world.
Bold reforms pending for decades have been implemented. Diesel prices have been decontrolled. The Goods and Services Tax (GST) is slated to be introduced next year. By facilitating companies to Make in India through a focus on Ease of Doing Business, new jobs are being created. Cooking gas subsidies are being paid directly to beneficiary bank accounts under PAHAL – ensuring the right amount of subsidy, reaches the right people, at the right time. FDI limits in insurance, railways and defence production have been raised. Moreover, we have embraced the states as equal partners in national development, working as Team India in the spirit of cooperative and competitive federalism.
Political interference in public sector banking decisions is a thing of the past. Transparent coal auctions and allotments have mobilized potential revenues of Rs. 3.35 lakh crores to coal-bearing states over the lifespan of mines. And reform in the Mines Act has replaced a discretionary mechanism with a transparent auction process. To combat black money, a Special Investigation Team has been appointed and a new stringent law passed.
Nearly Rs. 1 lakh crores of public investment have been allocated in this year’s budget to improve physical as well as digital connectivity. A comprehensive transformation of the railways into a locomotive of growth has begun. Stalled highway projects are being restructured and revived. Power generation is at an all-time high. A new National Infrastructure Investment Fund has been set up with an annual government funding of Rs. 20,000 crores.
Economic growth benefits all Indians. Growth however, has meaning only if it empowers the poor, farmers, women, as well as middle and neo-middle classes of all communities. To enable us to continue paying remunerative prices to our farmers, we secured a permanent ‘peace clause’ at the WTO. The world’s largest financial inclusion project has brought banking to the doorsteps of the poor, opening a record 15 crore plus bank accounts with deposits of over Rs. 15,800 crores. An affordable social security system including pension, life insurance and accident insurance, has already witnessed 6.75 crore enrolments in its first week. MUDRA has been set up with a corpus of Rs. 20,000 crores to help our small businessmen, who despite being our biggest job creators have historically been starved of credit.
A lot has been achieved. However, this is just the beginning. There is much more to be done and I know your expectations are high. A year ago I gave you my word that while I might perhaps commit errors, I would always act with pure intentions and spend every available moment working for a better India. I have kept my word. I seek your continued support, suggestions and blessings in building the India of our dreams.
New Delhi: People across India received a huge shock on Friday evening as Petrol and diesel prices were hiked for the second time within a fortnight. Petrol prices were raised today by 3.13 per litre and diesel prices by Rs 2.71 per litre.
Since taxes and levies differ from state to state, people will have to shell out much more than what has been projected by oil companies in terms of the latest price hike.
A statement by Indian Oil today said:
It has been decided to effect the following price changes with effect from midnight of 15th / 16th May, 2015:
• Increase in Retail Selling Price of Petrol by Rs. 3.13/litre at Delhi (including State levies) with corresponding price revision in other States. With this change, the price of Petrol in Delhi will become Rs. 66.29/litre.
• Increase in Retail Selling Price of Diesel (Retail) by Rs. 2.71/litre at Delhi (including State levies) with corresponding price revision in other States. With this change, the price of Diesel in Delhi will become Rs. 52.28/litre.
Prices of Petrol and Diesel were last revised w.e.f. May 1, 2015. Since last price change, there has been a steep increase in international prices of both Petrol & Diesel. INR-USD exchange rate has also depreciated quite significantly during this period. Combined impact of both these factors warrant an upward revision in prices, the impact of which is being passed on to the consumers with this price increase.
The movement of prices in international oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes
In contrast, the Union Ministry of Petroleum and Natural Gas today said in a statement that The international crude oil price of Indian Basket as computed/published today (May 14, 2015) by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 64.88 per barrel (bbl). This was lower than the price of US$ 65.70 per bbl on previous publishing day of May 13, 2015.
In rupee terms, the price of Indian Basket decreased to Rs 4141.94 per bbl on May 14 as compared to Rs 4217.28 per bbl on May 13. Rupee closed stronger at Rs 63.84 per US$ on May 14 as against Rs 64.19 per US$ on May 13. The table below gives details in this regard:
Price on May 14, 2015(Previous trading day i.e. 13.05.2015)
Company’s net leverage to increase to around 5x over the next two to three years
Singapore/Mumbai, Jan.28: Fitch Ratings has assigned a ‘BBB-‘ rating to India-based Bharat Petroleum Corporation Limited’s (BPCL; BBB-/Stable) USD2bn medium-term note programme.
KEY RATING DRIVERS
Strong Government Linkage: BPCL has very strong linkages – operationally and strategically – with its 54.9% shareholder, the Indian state (BBB-/Stable). Its rating is equalised with that of India based on Fitch’s Parent and Subsidiary Linkage criteria.
BPCL continues to sell public distribution kerosene and household LPG at below market prices under a regulated pricing regime, although diesel prices were deregulated in October 2014. Fitch believes that BPCL continues to be a strategically important entity for the state.
Before the deregulation of diesel pricing, the prices of around two thirds of the petroleum products (including retail diesel, public distribution kerosene and household LPG) marketed by BPCL were regulated by the government, and sold at prices lower than international market prices. The government funded these under recoveries (UR; difference between market prices and regulated prices) partly through direct budgetary support and partly by directing upstream oil companies to provide discounts to BPCL.
Significant Player: BPCL is the third-largest refiner in the country with a capacity of 30.5 million tonnes per annum (mtpa) that accounted for 14% of capacity in India, and the second-largest marketer of petroleum products with a 21% market share. In the financial year ended March 2014 (FY14), BPCL marketed 34.3mtpa (FY13: 33.7mtpa) domestically, exported 3.1mtpa (FY13: 3.2mtpa) and refined 28.7mtpa (FY13: 28.6mtpa) of petroleum products.
Under Recoveries Impact Working Capital and Debt: BPCL’s gross UR in FY14 was INR345bn (FY13: INR390bn), which was covered by government subsidies of INR184bn (FY13: INR219bn) and discounts from upstream players of INR156bn (FY13: INR168bn). BPCL shouldered INR5.1bn of the UR (FY13: INR2.5bn). BPCL’s working capital position has been impacted because of delays in the receipt of subsidy payments from the state.
Diesel accounted for the 52% of BPCL’s FY14 UR, but the amount of diesel UR is likely to decline substantially following the deregulation of diesel pricing. Further, the fall in oil prices to below USD50 per barrel in January 2015 from more than USD100 a year ago, will also help bring down inventory costs. These two events will reduce BPCL’s working capital requirements and the short-term debt required to fund it.
High Capex Planned: The company has outlined a fairly high capex of more than INR300bn over the next four years. The largest part of the capex is for the expansion of the Kochi refinery to 15.5mtpa from the current 9.5mtpa at a cost of around INR165bn. The high capex is likely to lead to continued negative free cash flows over the next four to five years.
Upstream Discoveries: BPCL has 20 upstream blocks (eight in India and 12 abroad), from which it has some successful discoveries – notably in the Rovuma Basin in Mozambique (in which it has 10% participating interest), in its Brazilian assets (20% participating interest), and West Australian onshore assets in Perth (27.8% stake). The Mozambique asset is assessed at having recoverable resources of 50trn-70trn cubic feet of natural gas, and the investors in the project also plan to set up a natural gas liquefaction plant with two trains with an initial capacity of 5mtpa each.
Credit Profile to Weaken: At FYE14, BPCL had a net leverage (net debt/EBITDA) of 2.8x (FYE13: 3.8x) and interest cover of 4.7x (FYE13: 2.6x). With BPCL likely to generate negative free cash flows due to high capex, Fitch expects the company’s net leverage to increase to around 5x over the next two to three years. BPCL has a comfortable liquidity position with cash and cash equivalents of INR50bn at end-September 2014 (FYE14: INR69bn). The company also enjoys good access to international and domestic capital markets.