Petrol Diesel Prices And Crude Rates; Narendra Modi Government Not Taken Advantage Of Cheap Oil | Crude oil is cheap, but the prices of petrol and diesel are not decreasing, Modi government has not given the benefit of decline in crude in 7 years

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  • Petrol Diesel Prices And Crude Rates; Narendra Modi Government Not Taken Advantage Of Cheap Oil

New DelhiOne hour 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, despite this the government has not reduced the prices of petrol and diesel. In the last 7 years, the Modi government did not give the benefit of cheap crude oil to the public. When the Modi government came cheap, crude oil was at $107 per barrel.

Base price of petrol reduced in Modi government, yet its price increased

According to the Petroleum Planning and Analysis Cell, when the Modi government came to power in May 2014, the base price of petrol was Rs 47.12 per liter, which came down to Rs 41 in July 2021. That is, it declined. But since then till date petrol prices have increased by 43%. Petrol in Delhi was Rs 71.41 in May 2014, which has now reached Rs 101.84 per liter.

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. Since May 2014, the tax ie excise duty on petrol and diesel has been increased 13 times. At the same time, it has been cut only 3 times. The government had last increased the excise duty in May 2020.

The central government levies tax on petrol and diesel 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. At present, excise duty on one liter of petrol is Rs 32.90 and on diesel Rs 31.83. After the Modi government came, the Center has increased the tax on petrol by 3 times and on diesel by 7 times.

Petrol and diesel become more than 2 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 many parts of the country. The central government is charging Rs 33 excise duty on petrol and Rs 32 on diesel. After this, the state governments levy VAT and cess on it according to their own. Due to this, the price of petrol and diesel increases by more than 2 times the base price. In the country, more than Rs 56 per liter tax is collected on petrol and Rs 45 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 increased by almost 3 times.

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 SBI report, if petrol and diesel come under the purview of GST, then the price of petrol in the country can come at Rs 81 and diesel at Rs 74 per liter. This means that petrol will become cheaper by 15 to 30 rupees and diesel by 10 to 20 rupees per liter. If they are brought under the purview of GST, then the prices of petrol and diesel will be fixed according to the prices of crude oil.

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