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State Finance Deptt clarifies on hike in prices of petrol, diesel

petrol

Dimapur, November 17: Facing criticisms from different quarters on the recent hike in the prices of petroleum products in Nagaland, the state’s Finance Department today clarified that Nagaland is not the only State that has raised the price of petroleum products after the COVID-19 pandemic and the subsequent lockdown.
It said even in the past fuel prices have been regularly adjusted based on the prices in neighboring States.
While presenting the existing prices of petroleum products in the North Eastern States as on November 17, the Finance Department said the figures clearly show that the Government of Nagaland has fixed very reasonable rates of tax on petroleum products compared to other States, and there is no cause to term it as oppressive.

Petrol NE rates


It also clarified that despite the substantially lower rates of taxes of the Government of Nagaland, the prices of petrol and diesel remain high mainly on account of the high base value of petrol and diesel in the State, which is higher than even that of Manipur.
The reason for such difference is being taken up with the I.O.C. for clarification since it is decided exclusively by the oil marketing company, it added.
The Department further stated that the price of Petrol and Diesel in Nagaland is cheaper than Assam and Meghalaya while it is very close to that of Manipur. The main reason for high price of Petrol and Diesel in the State is the high base value of Petrol and Diesel in the State which is higher than Assam and Manipur. The base value is decided exclusively by the Oil Company, it said.
Presenting the base value as on November 17, the Finance Department said the figures clearly show that that the Oil Company is fixing the base value unfairly in respect of Nagaland which is directly resulting in high price of Petrol and Diesel in the State even though the rate of tax is considerably lower than that of Assam and Manipur.

Base value


The State Government has asked I.O.C. Ltd. to explain the reasons for the higher base value of Petrol and Diesel as compared to neighboring State of Manipur, the Department said. (Page News Service)

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