Seeks clarification from IOC for high base value
Kohima, November 17 (MExN): The Finance department of the Nagaland Government on Tuesday clarified the government’s decision regarding the recent hike in the price of petroleum products in the State.
It stated 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 added.
Listing the existing prices of petroleum products in the North Eastern States as on November 17 (See table), the department said that “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.”
‘Unfair’ base value
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.
According to the department, while the price of Petrol and Diesel in Nagaland is cheaper than Assam and Meghalaya, the base value of Petrol and Diesel in the State is higher than Assam and Manipur.
Showing figures of base value in Assam and Manipur as compared to Nagaland (See table), the department claimed that the figures “clearly highlights 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 reason for such difference is being taken up with the IOC for clarification since it is decided exclusively by the oil marketing company, it added.
The State Government has asked IOC Ltd to explain the reasons for the higher base value of petrol and diesel as compared to neighboring State of Manipur, it said.
