Tax on Petrol & Diesel: Talking about 6 years of Modi Raj, the price of petrol has increased by about Rs 10 per liter. It is to be seen here that in the international market during this period, the price of Brent crude has come down by 60 percent. Even after this, the government has not given any relief to consumers in the price of petrol and diesel. Petrol and diesel prices remain high even after purchasing 60 percent cheaper crude. In fact, in this year, while the government got the benefit of cheap crude, the government has increased its treasury by continuously increasing the tax on it. Understand how the sport of oil has been since 2014 till 2020.
Year 2014
Crude international prices: $ 106 / barrel
Petrol Prices: (May 2014): Rs 71.41 / liter
Tax on Petrol: Rs 9.48 / liter
Tax on diesel: Rs 3.56 / liter
In the year 2020
Crude international prices: $ 41 / barrel
Petrol prices: (October 2020): Rs 81.06 / liter
Tax on Petrol: Rs 32.98 / liter
Tax on diesel: Rs 31.83 / liter
How much does the government earn on every liter
It can be understood that the base price of petrol in Delhi is around 26 rupees per liter. The cost of transportation on this is 0.36 rupees. The excise duty on this is Rs 32.98 per liter. At the same time, VAT (with dealer’s commission) is Rs 18.94. Dealer’s commission is around Rs 3.70. In this way, the petrol customers of 26 rupees between 81 and 82 rupees. In this, the central and state governments get about 51 rupees for every 1 liter.
Let me tell you that when the Modi government was formed, around May 2014, the total tax on petrol was Rs 9.48 per liter and diesel was Rs 3.56 per liter. Since then, tax on petrol has increased to 32.98 per liter and tax on diesel is Rs 31.83 per liter. Due to continuous taxation by the central and state governments, the planners are not getting the benefit of cheap crude, but they are being able to spend more for petrol and diesel.
1 rupee excise duty increase
Every rupee increase in the excise duty of petrol and diesel increases the central government exchequer by Rs 13,000-14,000 crore annually. At the same time, reducing the prices of crude helps the government to reduce the trade deficit. In fact, India buys about 82 percent of its crude. In such a situation, the current account deficit (CAD) of the country may also decrease due to the decrease in crude prices.
Connection of crude and economic growth
According to the Economic Survey, if the prices of crude now increase by $ 10, then the current account deficit can increase by $ 1000 million. At the same time, it reduces economic growth by 0.2 to 0.3 percent. While cheaper, it has the opposite effect.
Latest rates of Petrol, Diesel
Petrol in Delhi is Rs 81.06 per liter, while diesel costs Rs 70.46 per liter.
Petrol in Mumbai is also Rs 87.74 per liter and diesel is Rs 76.86 per liter.
Petrol in Kolkata is Rs 82.59 per liter and diesel is Rs 73.99 per liter.
Petrol in Chennai is Rs 84.14 per liter and diesel is Rs 75.95 per liter.
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Source: www.financialexpress.com
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