Tax on petrol diesel: Fuel prices are skyrocketing in the country. That’s why scissors are running on the pockets of common people. Similarly, the central government has put the responsibility of making petrol and diesel cheaper on the shoulders of the states. Union Petroleum Minister Hardeep Singh Puri has called upon the states to reduce VAT on petrol and diesel. The Center has appealed to the states to reduce VAT on petrol and diesel. But why is the central government not reducing the tax on petrol and diesel? Such a question is being raised by all the common people.
Before 4 November 2021, the central government was levying excise duty of Rs 32.90 per liter on petrol and Rs 31.80 per liter on diesel. Whenever crude oil prices have fallen since the Center came to power in 2014, the central government has increased excise duty.
Excise duty on petrol was Rs 9.20 per liter and on diesel Rs 3.46 per liter during the tenure of UPA government before Modi government came to power. However, the Modi government increased the excise duty on petrol by Rs 23.7 per liter and on diesel by Rs 28.34 per liter. In view of the elections to five states, the government had reduced excise duty on petrol by Rs 5 and excise duty on diesel by Rs 10 during Diwali. However, the Modi government is levying an excise duty of Rs 27.90 on petrol and Rs 21.80 on diesel.
Russia and Ukraine have been at war since February. As a result, the price of crude oil has increased. Currently, crude oil has reached above 130 130 per barrel. Due to rising crude oil prices, oil companies have increased the prices of petrol and diesel by Rs 10 per liter. This means that the government withdrew the relief of five rupees for Diwali. However, after the rise in crude oil prices, the government has not reduced the excise duty on petrol and diesel.
Rising fuel prices have made other household items expensive as well. In addition, gas prices have increased. While the common man is already fed up with Corona, now he is suffering from rising inflation. So, if the central government lowers the excise duty on petrol and diesel, it will curb inflation to some extent, say experts.