The petrol prices all over India have reached record breaking high with Rs. 70/litre in Delhi and Rs. 80 in states like Mumbai, thanks to huge taxes imposed by the government of India. The government blames it on the rise in prices of crude oil in the international market, which has risen a small bit. Dhruv Rathee explains the reality behind this petrol price hike and the hypocrisy and double standard of Modi government.
He says, petrol prices mostly depend on the cost of crude oil which constantly varies. Presently the basic cost of crude oil is Rs. 20/litre, it takes about Rs. 10/litre to complete the refining process, the commission taken by dealer is Rs. 3/litre. So the total cost borne by the government is Rs. 33/litre but we pay Rs. 70/litre. The rest money is tax. State government charges VAT tax of around Rs. 14, while the central government charges excise duty at around Rs. 21 per litre. Thus we are paying a tax of Rs. 46/litre. Just imagine we have to pay 107-140% tax on an object.
The reason according to government is the rise in cost of crude oil. But when crude oil price had been decreasing during the past three years, why the prices of petrol were not lowered? The government took the profit in the form of excise duty. Why the government didn’t pass on the benefit to consumers then?
Dhruv recollected that on 31st May 2012 when Congress government was in power, BJP had called for Bharat bandh in protest against petrol hike. It had taken to streets. Why they didn’t consider then that petrol price depends on crude oil. At that time the prices of crude oil were so high that the government had to give subsidy to regulate the prices.
Dhruv told that BJP should admit its mistake that they had least knowledge of economics. Government should either admit that it is in need of the taxes or reduce the prices of petrol by slashing excise duty.