1. Petrol Diesel Price Rise-
India is the World’s Third- largest oil market and depends heavily on crude oil. India consumes nearly 211.6 million tonnes of oil every year. India does not have enough reserves. India depends on imports with some of the blame on the Organisation of petroleum exporting countries, and they have cut supplies but the demand is rising. Owing to this, prices have gone up. People in India are paying more than 100 rupees a litre for petrol and this rise in fuel prices is affecting every Indian Household.
2. Government’s Taxes-
It’s important to understand fuel pricing in India and the global price is currently 60 dollars per barrel somewhere around 28 rupees per litre.
Indians are paying 100 rupees because of taxes. India has the highest tax on fuel 260% on the base price of petrol & 256% for diesel, according to CARE rating.
3. Govt committed to bring natural gas under GST regime: PM Modi-
India is committed to bringing natural gas into the Goods and Services Tax (GST) regime to make prices cheaper and uniform across the country. PM Narendra Modi said the government was spending ₹7.5 lakh crore over 5 years to build oil and gas infrastructure. India will generate 40% of all its energy from renewable sources by 2030.
Natural gas is currently outside the ambit of GST, and existing legacy taxes – central excise duty, state VAT, central sales tax — continue to be applicable on the fuel. Non-inclusion of natural gas under the GST regime is having an adverse impact on its prices due to the stranding of taxes in the hands of gas producers/suppliers and is also impacting natural gas-based industries due to the stranding of legacy taxes paid on it,” the Federation of Indian Petroleum Industry.
4. Industries affected by high oil prices-
- Consumer Discretionary
5. OPEC+ is due to meet on 4th March 2021
The Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, is due to meet on 4th March 2021, group will discuss a modest easing of oil supply curbs from April given a recovery in prices.
RailTel IPO grey market premium plunges
RailTel Corporation of India’s Rs 820 crore initial public offer (IPO), which has been seeing strong retail participation at bids totaling 11 times the issue size so far, closes for subscription on Thursday. Till the end of Day 2 of the IPO, the issue was subscribed 6.55 times with the retail quota getting bids for 10.55 times the limit. The qualified institutional buyers’ quota was subscribed 2.97 times and the non-institutional investor category 2.63 times the limit. The portion reserved for employees was subscribed 1.85 times. The grey market premium still suggests a 13-15 percent upside over the upper limit of the IPO price band.
SIPs back in limelight even as MF outflow continues
With the equity market scaling record highs, new SIP account registration has risen to a record of 16.4 lakh in January 2021, the data from the Association of the mutual fund of India (AMFI) show. This is the second month in a row when SIP registrations hit a record level. The previous peak was in January 2018 at 12.9 lakh accounts. The two-month rolling average of new SIP registration reached 30.7 lakh accounts compared with an average of 18 lakh in the past four and half years.
What’s in Joe Biden’s sweeping immigration bill being rolled out in Congress?
An eight-year path to citizenship would be provided for millions of people who were living in the United States unlawfully on Jan 1, 2021. They would receive a permanent residency card, commonly referred to as a “green card,” after five years if they pass certain requirements including background checks and could then apply for citizenship after three years. President Joe Biden’s proposed legislative overhaul of the U.S. immigration system, due to be formally introduced in Congress on Thursday, would be the largest in decades, but it faces steep odds.
Vodafone Idea lost 2.7 million users in October
Vodafone Idea Ltd slipped further behind its main rivals in terms of subscriber base as it net lost 2.7 million mobile subscribers in October. Data from the Telecom Regulatory Authority of India showed. In contrast, its rivals Reliance Jio Infocomm Ltd and Bharti Airtel Ltd saw an increase in their subscriber base by 2.2 million and 3.7 million respectively, which helped them further consolidate their position as the largest and second-largest operators in the country. Reliance Jio had 406 million subscribers as of October end, while Bharti Airtel had 330 million. Vodafone Idea, which was once the largest operator in India, slipped further behind its rivals at 293 million.
Should depositors worry about co-operative banks?
It is a financial entity engaged in the business of collecting deposits and lending – like any other commercial bank. But they function on the principle of cooperation and sharing profits with members. They offer services essentially to members who are shareholders of the bank. A co-operative bank also offers many high-tech products and services like any commercial bank. But their business jurisdiction in most cases is localized.
Petrol prices all time high
Petrol and Diesel prices have been on the rise once again. The price of a litre of Petrol breached the Rs.100 mark yesterday in Rajasthan. Elsewhere in the country, it’s the same story, albeit not as drastic and it’s upsetting a lot of people. Including the Prime Minister, who recently lamented about India’s dependency on foreign oil. India is most certainly dependent on foreign oil. Back in 2015, the government had outlined plans to reduce India’s import dependency – from 77% in 2013–2014 to 67% by 2022. Because the central government saw an opportunity to make some money here. After all, tax collections were abysmal. They were already borrowing too much. And they were desperately looking to fund their expenditure through any means necessary. So the central government increased excise by a record ₹10 per litre on petrol and ₹13 per litre on diesel, planning to raise a ₹1.6 lakh crores. States meanwhile got in on the act as well. They bumped up taxes in tandem and together these extra charges alone make up 55–60% of the final retail price today.