Teri for cushion against oil price spurt

New Delhi, Nov 17 | Updated: Nov 18 2005, 06:09am hrs
Seeking a revision of the import parity pricing (IPP) formula and the tax structure for petrol and diesel, The Energy and Research Institute (Teri) said the government should devise a formula to absorb the impact of the spiraling oil prices while keeping revenue neutral.

In its study on petroleum pricing in India released on Wednesday, Teri said "The IPP formula needs to be re-visited to ensure that the Indian refining industry enjoys a rational margin that is fair to producers as well as consumers."

As per Teri, the government can define a sliding scale of excise duties that would ensure its revenue expectations remain untouched with changes in international prices of crude and products.

The study pointed out that contributions from petroleum, oil and lubricants to central government revenues registered a significant 22% increase from Rs 33,806 crore in 2002-03 to Rs 41,386 crore in 2004-05.