James Wilson Profile picture
Apr 27 14 tweets 5 min read
Let me decode the petrol price build up again for you.

This pie chart is preapred from the price build-up given by IOC dated 16-04-2022, ex-Delhi.

The tax on petrol is 43% of the total price of petrol, ie, we pay 80% as tax on the base price of petrol.

#thread #fueltax Image
The source is here, IOC price build-up for ex-Delhi

Base Price - Rs. 56.32/lit
Freight & Dealer Commission - Rs. 0.20+3.86/lit
Central Excise Duty - Rs. 27.90/lit
State VAT - Rs. 17.13/lit Image
How the Central Government increased the Excise duty on Petrol, this chart will explain it.

While NDA took over in 2014, the tax was Rs.9.48 (wef 14/09/22), it was continuously increased to Rs.32.98 (on 6.06.2020.

On 4.11.2021, the central excise is reduced to Rs.27.90 Image
Also, understand that only Basic Excise Duty is to be shared with States under the divisible pool.

Rest are either Cess/Surcharge at the discretion of Union.

BED shared is now mere 5% of the total excise duty from 67% of what it was in 2012.

Real co-operative federalism ;) ImageImage
As Central Government gets 58% of BED, how the excise duty of Rs.27.90 collected is shared between Union & States.

Yes, when Union increased the excise duty, it systematically reduced the States' share too and grabbed 98% of it to their kitty.

A silent coup! Image
Now see the tax structure, while Union Excise is a specific tax, that is fixed amount per liter of petrol.

States charge their tax as either Sales Tax/VAT, where it is a percentage tax.

After GST regime, only Petrol & Alcohol are only available at State's disposal to tweak
Since it is a VAT/Sales Tax, States' taxation is a percentage of base price, central excise, freight and dealer commission.

So when Union reduce excise, State's automatically take a cut, while base price increases States benefit immensely.
The following table gives you a glimpse of percentage tax charged by all States/UT in India.

States/UT like Assam, Bihar, Chandigarh, Haryana, Himachal Pradesh, Jharkhand, Meghalaya, Nagaland, Uttar Pradesh, Uttarakhand & West Bengal charge higher of either specific tax or VAT. ImageImage
The above tax regime of ceiling VAT with a specific tax adopted by some States is a welcome step in the right direction to ameliorate the pain due to the exorbitant VAT component when the fuel prices hit the roof.
Please recollect that Union Excise Duty changed from ad valorem (percentage tax) regime to specific tax regime in 2008 as per the recommendation of Rangarajan Committee.

IMHO, States should shift to a specific tax regime, which insulate from volatility of markets.
Sometimes, economical with truth helps👇

Kerala charges 30.08% Sales Tax + Rs.1/lit addl sales tax + 1% cess.

What about Madhya Pradesh?
They also charge 29% VAT + Rs 2.5/lit VAT + 1% cess.
It is preferred, as a matter of transparency, all oil companies shall publish the price build up of petrol & diesel at least for every State capital.

Now they publish this data only for Delhi.

This will help people to have a meaningful comparison.
Typo...read as

Rs. 9.48 (wef 14/09/12) it is 2012 not 2022
PS: My interest on fuel tax was triggered during the fag end of UPA-2 regime, when there was huge cry about fuel prices.

So I meticulously fill my Excel sheet & read all policy papers by Petroleum Ministry and Gazettes to understand the nuances.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with James Wilson

James Wilson Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @jamewils

Dec 5, 2021
Today's @the_hindu says concern on the #Mullaperiyar Dam was first raised in 1979.

As our research & memory is so short, let me share @timesofindia Mumbai Edition dated 11.05.1962 (a typed copy from Kerala Secretariat files)
Interestingly, who raised alarm about safety of Mullaperiyar Dam after independence?

Not Kerala Engineers, it is TN PWD Engineers who said that the dam is seismically & hydrologically NOT SAFE and recommended strengthening!

They even published papers in reputed journals!
I have all documents with me to substantiate the above tweets, it is the consistent and continuous meticulous research I am doing since 2006.

Everything will be included, when I publish my book on #mullaiperiyardam.

I will write the book for the future generations
Read 5 tweets
Dec 3, 2021
"If the rule curve acknowledges 142 feet, here it is equal to permitted Full Reservoir Level (FRL) at the end of the season.

But if you blindly follow it, you will be forced to throw all the water downstream in case it rains."
So prudence is required when there is cyclonic circulation prevailing and heavy rainfall alerts are around.

One should never store upto FRL.

I had to fight to sell this important point on operational safery to many of peers too!
People are got confused with structural safety, hydrological safety and operational safety.

Your dam may be safe for 142 ft FRL, but if you plan to store water to the brim, you left with zero flexibility.

You are comprising the operational safety!
Read 4 tweets
Nov 7, 2021
If someone is accusing High prices of Fuel is due to MMS Government's opening Petroleum sector to open market, they are shutting their eyes & propagating inconvenient truths.

A #thread on what lead to such a decision
Due to volatility of the markets, the very subsidies provided by the Government of keeping the fuel prices to check became unsustainable!

actual under-recovery in 2012-13 was ₹ 1,61,029 crore, out of which Diesel alone accounted for ₹ 92,061 crores (57%).
2012-13 Government provided cash compensation of ₹ 1 Lakh crore while upstream companies (ONGC/OIL/ GAIL) contributed ₹ 60,000 crore.

₹ 1029 crore was absorbed by the OMCs.
Read 11 tweets
Sep 3, 2021
What ails India’s coronavirus genome sequencing system

The country sequenced only 0.2% samples till date, one of the lowest in the world

Evidence based policy? How dare you? downtoearth.org.in/news/governanc…
To date, Maharashtra (14,003 samples) and Kerala (5,485 samples) have sequenced and analysed 23 % and 9 % of the country’s total volume analysed. 

Do these % makes any sense? Be worried
Take the case of Kerala. 5485 samples out of a total identified cases of 40,90,036.

That means only 0.13% of the samples genome sequenced.

Do this is enough to conclude that what Kerala is witnessing now is only because of DELTA alone?
Read 5 tweets
Aug 20, 2021
UK total population (6.82 crores ) is almost double of Kerala's (3.47 crores).

UK fully vaccinated around 60.38 % of its total population & partially vaccinated 9.46%.

Meanwhile Kerala fully vaccinated only 19.6% of its total population & partially vaccinated 33.5%. #Thread
Unlike UK, Kerala is not sovereign & cannot give indemnity bond or export vaccines.

Kerala is at at the mercy of the Union Govt to get its vaccines.

If supply is ensured, Kerala would have long back vaccinated its whole adult population, we have the wherewithal to do it.
Now comes to the qn of infections and deaths.

UK on 18th Aug had 497.3 infections/million while Kerala is having 617.5 infections/million

UK had recorded 1.64 deaths per million while Kerala recorded 5.16 deaths per million.

Of course, our infection & deaths are a concern.
Read 14 tweets
Aug 18, 2021
But #Kerala's #COVID19 cases showing a downward trend, though it is not so significant ...

See the 7 day moving average daily infections graph.

How we will behave in coming days will define our #COVID19 trajectory.

Please be responsible to you and your society!
Not sure what we are now witnessing is the 3rd wave or 2nd wave, maybe it is like 2 monsoon overlap each other here.

If Kerala can fully vaccinate its population, then we can negotiate next wave.

Kerala has the wherewithal to fast vaccinate, if it is made available!
Thanks to our robust health infrastructure and health workers, which are spread in a uniform manner at the breadth and width of our State, we never seen a crisis like North Indian States witnessed.

Yes, around 10 days, our system stretched to the limit during 2nd wave peak.
Read 7 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(