New Delhi3 minutes ago
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After reaching $ 77, now crude oil has once again come down to $ 70 per barrel. For the last 2-3 days, crude oil is running below 70, but the government has not reduced the prices of petrol and diesel. Under the Modi government, the public has not got the benefit of cheap crude oil. Crude oil was at $107 per barrel till the Modi government came in cheap.
Base price of petrol reduced in Modi government, yet its price increased
According to the Petroleum Planning and Analysis Cell, in May 2014, when the Modi government came in the cheapest price, the base price of petrol was Rs 47.12, which came down to Rs 41 in July 2021. That is, it declined. Despite this, petrol prices have increased by 43% today. In May 2014, petrol in Delhi was at Rs 71.41, which has now reached Rs 101.84 per liter. Base price is what
Increased prices due to heavy tax collection
Now the question must be coming in your mind that when the base price has come down in the Modi government, then how did petrol and diesel become expensive. The reason for this is the increase in the tax on petrol and diesel. Excise duty on petrol and diesel has been increased 13 times since May 2014.
The central government collects tax through excise duty. When the Modi government came in May 2014, the central government used to charge Rs 10.38 on one liter of petrol and Rs 4.52 on diesel. Excise duty has been increased 13 times in Modi government, but reduced only three times. The last excise duty was increased in May 2020. At present, excise duty on one liter of petrol is Rs 32.98 and on diesel Rs 31.83. After the arrival of Modi, the central government has increased the tax on petrol three times and on diesel by 7 times.
Petrol and diesel become 3 times more expensive after tax
The base price of petrol in the country is Rs 41 and that of diesel is Rs 42. But due to the tax levied by the central and state governments, their prices have crossed Rs 110 in parts of the country. The central government is charging Rs 33 excise duty. After this, the state governments levy VAT and cess on it according to their own. Due to this, the price of petrol and diesel has increased by 3 times from the base price. In India, more than Rs 55 is taxed on petrol and Rs 44 on diesel.
Government’s earnings from excise duty tripled in 6 years
After the Modi government came to power in 2014, excise duty on petroleum products earned Rs 1.72 lakh in the financial year 2014-15. In 2020-21, this figure reached Rs 4.54 lakh crore. That is, in just 6 years, the Central Government’s earnings from excise duty became 3 times. At the same time, the income earned by the states from levying VAT on petrol and diesel has increased by 43% in 5 years.
Its earnings were 1.37 lakh crore in the financial year 2014-15, which increased to 2.03 lakh crore in 2020-21. Despite the lockdown imposed due to Corona, the government has filled its treasury by charging heavy taxes on petrol and diesel.
Petrol and diesel will not come under GST
The government has made it clear that petrol and diesel will not come under the purview of GST. Minister of State for Petroleum and Natural Gas Rameshwar Teli said in the Lok Sabha on Monday that, till now the GST Council has not made any recommendation to bring oil and gas under the purview of GST.
According to the report from SBI’s economists, the price of petrol and diesel in the country can come at Rs 81 per liter and diesel at Rs 74 per litre. This means that petrol will become cheaper by Rs 15 to 30 per liter and diesel by Rs 10 to 20 per litre. If they were brought under the purview of GST, then the prices of petrol and diesel would have been according to the prices of crude oil.