Gulf Oil and Gas accountACCOUNT

India Panel Seeks Tax to Fund Vehicle Emission Reductions

Source: Bloomberg 6/13/2014, Location: Asia

India should impose a tax on fuel sales to fund refinery upgrades for cleaner fuels so that vehicles can eliminate cancer-causing particle emissions, a government panel said.

The government could levy an extra tariff of 0.75 rupee a liter on gasoline and diesel sales over seven years to collect 640 billion rupees ($10.7 billion) to finance the upgrades, the auto-fuel policy committee recommended in a report posted on the oil ministryís website.

Without the extra money, state-run refiners such as Indian Oil Corp. (IOCL) wonít be able to supply fuels of the same quality sold in Europe until April 2025, the panel said. That would lag behind emission norms in developing nations, including Vietnam, Brazil and Chile.

India suffers from some of the worldís deadliest air pollution. Vehicles canít install the necessary equipment to scrub their exhaust of lethal particles, known as PM2.5, until the nation switches to the equivalent of Euro-5 fuel. Meeting a more ambitious target to roll out Euro-5 equivalent fuel by April 2020 would require imposing the tax starting next month, according to the report.

The recommendations come 18 months after the panel was formed under the previous government. They need to be accepted by Prime Minister Narendra Modiís administration, which took office on May 26, to take effect.

The World Health Organization identifies PM2.5 as one of the most dangerous among air pollutants that cause more deaths worldwide than AIDS, diabetes and road injuries combined.

In India, PM2.5 emissions are emitted by diesel vehicles, whose tailpipe exhaust can carry 10 times the carcinogenic particles found in gasoline discharges. Diesel car sales in India are surging because the subsidized fuel is 20 percent cheaper than gasoline and more efficient on a per-kilometer basis.

Financials and Investment News in India >>

United States >>  10/11/2019 - BP now expects to deliver divestment proceeds and announced transactions totalling around $10 billion by the end of 2019, comprising the majority of i...
Spain >>  10/10/2019 - Columbus, the oil and gas producer and explorer with operations in Trinidad and Suriname, provides the following update about the La Lora Concession i...

Norway >>  10/7/2019 - Equinor is the operator for 21 projects in the implementation phase, with a total investment of around 210 billion kroner. 20 of these are on the Norw...
United Kingdom >>  10/3/2019 - IGas announces that it has signed a US$40 million senior secured Reserve-Based Lending Facility (RBL) with BMO Capital Markets (BMO). ...

Egypt >>  10/2/2019 - Egypt's market has been expecting the government's decision on the new fuel prices after applying the automatic fuel pricing mechanism. ...
Australia >>  10/1/2019 - Polarcus Limited (PLCS) has secured high industry prefunding for a multi-client project in Australia. The project will commence in Q4 2019 with an app...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


India Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |

More News

Related Links

Gulf Oil and Gas
Copyright © 2019 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.