India imports greater than 85 per cent of its requirement of crude oil. Crude oil coming from overseas goes to the refiners. There petrol, diesel and different petroleum merchandise are extracted. These merchandise then go to grease firms, equivalent to Indian Oil, Hindustan Petroleum. These firms add income to the petrol pump. The proprietor of the petrol pump provides his fee. Provides tax levied by central and state governments.
The federal government buys crude oil from overseas in barrels. One barrel i.e. 159 liters. In November this yr, the worth of Delhi one liter petrol was 81.06 rupees. The Indian Oil Company mounted the bottom worth of 1 liter petrol at Rs 25.37. After this it got here at a worth of Rs 32.98 together with import responsibility (central tax), Rs 18.71 cess (state tax), fee of proprietor of petrol pump after that Rs 3.64 and different taxes. Like petrol, the fundamental worth of diesel was additionally Rs 25 per liter in November.
The bottom worth of 1 liter of petrol in Delhi was Rs 24.42. The Heart imposed a tax of Rs 31.83, a state tax of Rs 10.36 and a fee of the proprietor of a petroleum pump of Rs 2.52. After this, the worth of 1 liter diesel turned 70 rupees 46 paise.
In Could 2020, the central authorities elevated the import responsibility on petrol and diesel. When the BJP authorities was shaped on the Heart in Could 2014, an import responsibility of Rs 9.48 was charged on one liter of petrol and Rs 3.56 on diesel. Since then, import responsibility has elevated 16 instances. The discount has been executed solely 3 times. The federal government earns rather a lot from it. In response to the Petroleum Planning and Evaluation Cell (PPAC), the federal government has earned Rs 49,914 crore from the primary quarter of this yr ie April to June by import duties and totally different taxes on petroleum merchandise.
After the Heart, state governments earn by levying VAT. The Telangana authorities expenses the very best VAT in your complete nation. Right here 35.20 % tax is levied on petrol and 27 % on VAT diesel. It’s adopted by Tamil Nadu and Madhya Pradesh authorities at quantity three. In India, petrol and diesel are the biggest shoppers of visitors and agriculture.
Due to this fact, the costs of petrol and diesel not directly have an effect on the widespread man's pocket. The central authorities says that it isn’t in its arms to scale back the costs of petrol and diesel. Prime Minister Narendra Modi blamed Congress for the worth hike. In India, the place the costs of petrol and diesel have elevated tremendously. On the similar time, their costs have decreased in neighboring nations.
The value of 1 liter petrol in Pakistan in April 2014 was Rs 66.17 and the worth of diesel was Rs 71.27. However now a liter of petrol is round 51.13 rupees and diesel 53 rupees. Amongst our 4 neighbors, Bangladesh is the one one which has elevated petrol and diesel costs throughout this era.
Tax assortment doubled
When the BJP authorities got here to energy in Could 2014, the worth of crude oil was $ 106.85 per barrel. In January 2021 it was $ 54.79 per barrel. Crude oil costs have nearly halved. However the tax assortment has doubled. Until 2014, taxes on petrol have been 34 per cent and on diesel 22 per cent, however at this time tax on petrol is 64 per cent and diesel is 58 per cent.
We’re doubling on petrol and two and a half instances on diesel as earlier than.