COVID, fuel price hike cost state Rs 89.34 Cr revenue loss
Source: Chronicle News Service

Imphal, August 09 2021: The state suffered revenue loss of Rs 49.34 crore from sale of fuel in 2020-21 as compared to revenue collected in 2019-20 .

One of the main reasons behind the revenue loss is said to be decline in sale due to hike in fuel price.

Consequently, All Manipur ICO Retail Outlet Dealers' Association has urged chief minister N Biren to reduce the VAT levied on petroleum fuel.

As per data received from IOCL, in 2019-20, when the Covid-19 pandemic hit the state, 1,08,857 KL diesel and 76,012 KL petrol were sold.

In the following year, 2020-21, IOCL managed to sell only 92,941 KL diesel and 65,558 KL petrol.

With 22.50 per cent VAT, Rs 26.78 per litre of diesel in accrued to the state exchequer.

In comparison, sale was reduced by 15,916 KL diesel in 2020-21 and the state suffered loss of revenue to the tune of Rs 26.78 crore.

On the other hand, VAT on petrol is 36.50 per cent and Rs 21.54 per litre of petrol is accrued to the state exchequer.

Sale of petrol was reduced by 10,454 KL in 2020-21 as compared to 2019-20 and the state suffered revenue loss of Rs 22.55 crore due to decline in sale.

According to a member of All Manipur IOCL Retail Outlet Dealers' Association, hike in fuel price is adding to the misery of Covid-19 pandemic affected people and prices of essential commodities are also rising simultaneously.

The whole country is facing the impact of the pandemic and rising fuel price but fuel rate in the state is higher than in neighbouring states and it affects the common people, he said.

One litre of diesel costs Rs 92.065 in Nagaland, Rs 88.49 in Guwahati (Assam), Rs 87.92 in Meghalaya and Rs 93.09 in Manipur.

These northeast states reduced their VAT rate and it resulted in reduction in fuel prices.

As a result, transporters are buying fuel from neighbouring states and it impacted fuel sale in the state.

Reduction in sale of petroleum fuel means reduction in revenue and as such, price hike in fuel price not only affects the public but also the government and it is clearly evident from the sale volume report of IOCL, he said.

The transporters will automatically buy fuel from the state if the government reduces the VAT rate and it will also help in bringing down of prices of essential commodities, he pointed out while urging the government to consider the appeal.

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