Petrol and diesel prices in India are continuously setting new records. Petrol is being sold at the highest prices in India. In some states, the price of petrol diesel has gone above ₹ 100 per liter. However, petrol and diesel prices have remained stable for the last few days.
The government claims that we do not fix the prices of petrol and diesel. The prices of petrol and diesel in India have been handed over to the market. Experts say that the prices of crude oil are continuously increasing. But the price of petrol and diesel is not increasing. Experts say that the prices of petrol and diesel are still being controlled by the government. Petrol-diesel prices are stabilized at the time of election. After this, the prices of petrol and diesel start increasing continuously. In such a situation, the government’s claim that the prices of petrol and diesel are decided according to the international market. Seems to be a lie in itself!
How much can petrol diesel prices be reduced?
As elections come closer, the prices of petrol and diesel are stabilized as is happening at the moment. In such a situation, it is certain that the government controls the prices of petrol and diesel. In such a situation, the question arises that how much can the government reduce the prices of petrol and diesel? Recently there were media reports that the central government is preparing to reduce the prices of petrol and diesel by talking to the state governments. But in reality it does not seem to be happening. In such a situation, the question arises that how much can the central government reduce the prices of petrol and diesel?
Recently there was a report from ICICI Security. This report says that if the central government also cuts ₹ 8.50 paise per liter on petrol and diesel, then the government exchequer is not going to be affected. This report by ICICI Security states that, if the government reduces the prices of petrol diesel by up to ₹ 8 50 paise per liter, this will increase the sale of petrol diesel. So that the government can compensate for the loss in its revenue.
At the same time, this report of ICICI Security has claimed that the government wants to earn more revenue from petrol and diesel. This revenue can be earned even after deducting ₹ 8.50 paise on petrol diesel. However, how much importance is the government giving to this report? It will also be interesting to see. Right now, when we talk about the exercise duty on petrol and diesel at present, it costs about ₹ 33 per liter on petrol. While the excise duty on diesel is around ₹ 32.
Now, if we talk about the figures of the government’s budget, those figures also allow the government to reduce the tax on petrol and diesel. The government has stated in its budget that the government aims to earn Rs 3.20 lakh crore from petrol and diesel. Whereas, if the tax on petrol and diesel is charged at the current rate, then the government is going to have an income of about Rs 4.35 lakh crore. Which is much more than the goal.
In such a situation, experts are raising the question that when the tax on petrol and diesel can be reduced, then why is the government not doing it? The government is continuously claiming that the collection of GST is continuously increasing and this figure has gone above Rs. 1.10 lakh crores. But the government fears that in the coming times the collection of GST may decrease. In such a situation, the government does not want to reduce its earnings from petrol and diesel.
Will petrol and diesel be brought under the GST?
Since the price of petrol diesel in India has crossed ₹ 100, people are constantly demanding that the time has come to bring petrol and diesel in the country under the purview of GST. But neither the central government nor the state governments are ready to bring petrol and diesel under the purview of GST. However, for the last few days, the government must say that, we want to bring petrol and diesel under the purview of GST. But the question arises as to who will initiate it?
When GST was implemented in India, the state governments placed a condition before the central government. That condition was that petrol and diesel would be kept out of the purview of GST. Apart from this, there was talk of keeping liquor out of the purview of GST. On the basis of these conditions, the State Governments were allowed to implement GST. In such a situation, now the Central Government will single-handedly bring petrol and diesel under the ambit of GST. It does not seem to be happening. At the same time, BJP ruled states are also not talking about bringing petrol and diesel under GST. In such a situation, it is not possible to bring petrol and diesel under the ambit of GST.
There is also another story of petrol and diesel, that in India, both the state government or the central government, both of them earn big money from these substances. On the other hand, life in India is also directly affected by the prices of petrol and diesel. Freight increases. At the same time, the prices of goods also increase. The per capita income in India is not so high that it can bear the increased petrol and diesel prices. In such a situation, the challenge before the government is to balance the prices of petrol and diesel. In which the government seems to be failing at the moment.
The government has been consistently saying that petrol and diesel prices in India are fixed on the basis of international prices. But in the past, crude oil prices had come down to $ 62 per barrel. Even at this time the prices of petrol and diesel in India were not reduced. Rather, the prices of petrol and diesel were constantly raised. In such a situation, the question arises whether the government also accepts international prices or not? And if she agrees, then why did not the prices of petrol and diesel be reduced?
Petrol and diesel may become more expensive in the coming times
Talking about international crude oil prices, they can increase even more. Crude oil prices are currently around $ 67 per barrel internationally. But another fact of the matter is that we are not buying expensive petrol and diesel due to the increasing cost of crude oil internationally. Rather, due to the huge tax levied in India, we are being forced to buy expensive petrol and diesel.
OPEC, the largest body of oil producing countries, has not indicated any increase in the production of petrol and diesel crude oil. Crude oil prices have since risen to around 2% internationally. Experts are hopeful that crude oil production can be increased by next month. But if the economies around the world recover by that time, then the demand for petrol and diesel is also set to increase. In such a situation, petrol and diesel may become more expensive in the coming times.
Experts say that in the coming time, international crude oil prices can also be as high as $ 90 per barrel. In such a situation, if crude oil is expensive internationally, the price of petrol and diesel in India can range from ₹ 120 to ₹ 130 per liter. Which in itself is much more expensive.
If the government increases the prices of petrol and diesel by more than one extent, then the challenge for the government is going to increase in the coming time. In such a situation, the government will have to reduce the tax on petrol and diesel. Which we can clearly see. At present, the government has the option to reduce the price of petrol and diesel by ₹ 8.50 paisa per liter. Even after this, if international crude oil prices rise, the government will have to be prepared to reduce the tax on petrol and diesel. Otherwise, the coming days can be very difficult for the common man. Especially individuals who use personal vehicles for everyday. Or use a private vehicle to go to the office.
Another problem that people in India have is that public transportation in India is not as good. As in developed countries. Because of this people avoid using public transportation. In such a situation, it will be interesting to see what decision the Government of India takes regarding the prices of petrol and diesel.