Kumari Palany & Co

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How the Petrol and Diesel prices affect the livelihood of people?

Posted on: 22/May/2018 12:53:11 PM
The Petrol and diesel prices hit a new record of highest mark recently, Central Excise duty and VAT being the main reasons for the skyrocketing price hike. A whopping 100 percent and more tax rates were collected for petrol and 66.48 percentage of tax for diesel. The Central government taxation policies on the petrol and diesel prices is totally collapsing the economy entirely based on transportation of people and goods.

The new high of Rs 84.70 per litre for Petrol was recorded in Mumbai and Delhi owing to central and state tax impositions and the confused internal affairs of the country. In spite of the changes in the crude oil rate in the world economy, the Indian government gradually raised the fuel prices without any downward deviations.

In the FY2014 the price of the petrol charged to dealers was Rs 47.18 per litre. Now in 2018 the price for the dealer is Rs 37.42 per litre which is very much lower than the 2014 scenario. But on contrary the government imposing heavy tax in the fuel prices and so the ultimate negative effect goes on to the people burning out their hard earned money.

The way the Fuel market works in the country was highly critical in recent years and the diesel price hike directly affects the prices of all goods transported all over the country. The increase in Fuel prices, Toll Booth Collection and the GST impositions hikes a particular goods normal price to peak, literally pickpocketing money from the public directly and indirectly.

Especially after the BJP came into ruling the fuel prices have gone up on a consistent ratio in spite of drop in global crude oil prices. The Finance Ministry revenue collection expects more than Rs 2.579 Lakh Crore by levying taxes on petroleum products which is far higher than the previous years collections. Petrol was hiked up to Rs 11.77 per litre and diesel by Rs 13.47 per litre with the threshold mark of 2014 petrol/diesel rates.