Fuel Prices Hiked Again: Petrol is at INR 88.12 and Diesel is at INR 77.32!
Fuel prices are continuously rising and the present day situation has forced consumers to limit the use of petrol and diesel to keep budgets under check. Assuming that the situation can go even worse, 23 paise hike for both petrol and diesel is too much in general terms. Indian Oil Corporation is now retailing petrol for INR 88.12 and diesel for INR 77.32 in Mumbai while Delhi saw an almost similar hike with present prices being INR 80.73 for petrol and INR 72.83 for the diesel. The alarming situation has resulted in an overall hike in prices for transport related costs.
The VAT on fuel was reduced by 4% in Rajasthan, allowing consumers to enjoy temporary relief from the regular hikes. Apart from this one state, no other government has shown concern regarding the change in VAT. The central government also enjoys a huge excise duty revenue of INR 19.48 per liter for petrol and INR 15.33 per liter for diesel. State governments use VAT as a way to boost revenue through petroleum products. Maharashtra charges 39.12 percent VAT on petrol, making it the highest value among all other states in India. The resulting figure is pretty shocking.
Fuel prices are fluctuating with fall of the Indian Rupee’s value against US Dollar, getting a surge in price for crude oil. The consumption of fossil fuels is so high that a major chunk of revenue for the government is derived from this section only. The government had no strict plan for implementing GST on petroleum products as the highest 28% slab would not even be enough to match the present tax rates. The strength of Indian Rupee can only save the government from a crisis like situation in the coming weeks. Consumers also demand single pricing for these products across the country.