The turmoil in Libya, Egypt spreading to the bordering OPEC (Organisation of the Petroleum Exporting Countries) countries has crippled the octroi collection of the BMC.
The turmoil in Libya, Egypt spreading to the bordering OPEC (Organisation of the Petroleum Exporting Countries) countries has crippled the octroi collection of the BMC.
The brewing contention in these economies has drastically brought down the import of crude oil, leaving the BMC grappling to meet its revised octroi estimates of Rs5040 crore. The revenue through octroi relies on the crude oil imports.
The Middle Eastern countries are the highest exporters of crude oil. With the toppling of dictators in the economy, the oil refineries have been shut.
“The export has plunged. This has left the importers with negligible trade. Because of this the octroi collection has seen a major dip,” said a senior civic official, on condition of anonymity.
With the production of oil affected, the price of the oil barrels has skyrocketed. The price is fluctuating between $70-$80 per barrel. However, the officials state that the oil industry under contention has surged the oil prices to $100 a barrel.
“Due to negligible oil production both the exporters and importers are relying on the reserved oil barrel stock. This has affected the revenue collected from crude oil,” added the official.
Expecting a jump in octroi due to substantial hike in crude oil import, the BMC had hiked the revenues twice in last two months. The revenue estimates from octroi stood at Rs4775 crore. In January, it was revised to Rs5045 crore.
The BMC has a tough revenue target of Rs504 crore, which has to be achieved in 30 days. The civic officials were sceptical in meeting the targets amidst the status quo. Meanwhile till now, only Rs4541 crore has been collected.
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