Refining: state of the industry (2001-02)

Refining: State of the industry (2001-02)

On November 10, 2001, prices of domestic LPG, MS and HSD were revised. LPG prices for domestic use (14.2 kg cylinder) were increased from Rs 225.65 per cylinder, to Rs 226.70 per cylinder. The retail price of MS (1 per cent benzene content) was increased from Rs 31.73 per litre, to Rs 31.90 per litre in Mumbai. The retail price of HSD (0.05 per cent sulphur) was increased from Rs 20.67 per litre, to Rs 20.79 per litre in Mumbai. Subsequently, on January 12, 2002, retail prices of MS and HSD were reduced to Rs 30.79 per litre and Rs 20.71 per litre respectively.
The excise duty on MS and HSD was increased from 32 per cent, to 90 per cent and from 16 per cent to 20 per cent respectively, with effect from January 12, 2002.

Uniform levy of a 4 per cent sales tax on ATF: The Civil Aviation Ministry has proposed to the Finance Ministry that the sales tax on ATF used by domestic airlines should be capped at a uniform levy of 4 per cent by categorising it as ‘declared goods‘ under the Central Sales Tax Act.

Removal of the import duty on fuel oils: The Federation of Indian Chambers of Commerce and Industry (FICCI) has asked that imports of fuel oils, like furnace oil and LSHS, used by captive power plants should be allowed without any import duty, so that the Indian industry can generate power at rates comparable with other countries.