Skyrocketing Petrol & Diesel prices
After reading this blog, you will be able to know why different cities have different fuel prices, why there is a sudden hike in petrol and diesel price- Is it because of novel covid or Government pocketing revenue?
We should understand that Government needs revenue out of every produce, increasing the prices, and thus causing a price rise, triggering other products too.
We blindly believe that due to the relaxation of the lockdown the demand for fuels raised but it's not the case so states earn a huge sum of revenue from fuel tax and liquor. That's why even during the pandemic liquor shops stayed open. We are taxed more on the actual fuel price.
Every day the Oil marketing companies usually revise the fuel rate by benchmarking domestic fuel prices with international prices. Due to covid-19, they paused this for over 80days as it was harder to predict.
Suppose if fuel cost ₹90 then ₹30 is the actual price and ₹60 is the overhead tax. The retailers and carriage cost charge and come up with a basic price which is 1/3 but then 2/3 of the price composes of the following tax:
- The government obtained parliament's approval to charge a fixed amount on every liter of petrol and diesel known as excise duty.
- State governments levy Valued Added Tax(VAT-consumption tax) that is why fuel price of Chennai, Mumbai, Kolkata & Delhi differ.
DATA FROM INDIAN OIL CORP.
|
CITY |
PETROL |
DIESEL |
|
DELHI |
83.71 |
73.87 |
|
CHENNAI |
86.51 |
79.21 |
|
KOLKATA |
85.13 |
77.44 |
|
MUMBAI |
90.34 |
80.51 |
Time changed over a decade and consumers no longer enjoy cheap fuel rates.
Good day!!
FinBolts...
Comments
Post a Comment