Kohima, November 18 (NEx): The Finance Department, Government of Nagaland on Tuesday clarified on the recent hike in the prices of petroleum products which came into effect from November 11th midnight.
The Finance Department 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. In fact, even in the past, fuel prices have been regularly adjusted based on the prices in neighboring States, it said.
While drawing a comparison with the neighbouring states, it said that the existing prices of petroleum products in the North Eastern States as on November 17, 2020 are as follows:-
Referring to the above figures, the Government of Nagaland said that it has fixed very reasonable rates of tax on petroleum products compared to other States, and also said that there is no cause to term it as oppressive.
The department 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 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 affirmed.
The department also said 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 added.
According to the notification from Finance Department, the base value of the fuel as on November 17, 2020 in Nagaland for Petrol stands at Rs 59.79 and Diesel at Rs 58.69.
While in Assam, base value of Petrol stands at Rs 59.59 and Diesel at Rs 58.19. In Manipur, base value of Petrol is at Rs 59.57 and Diesel at Rs 58.20, it notified.
The department further said 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.
The State Government also affirmed that it 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.