Petrol Price down by Rs. 1/-!! Decision by reducing taxes!!
Posted on: 28/Jun/2014 3:39:13 PM
Central government earns a lot of revenue from the Duties imposed on all petroleum products. Last year, the revenue for the Duties levied on petroleum products was Rs. 64,255 Crores.
It is expected that the customs revenue from petroleum products will increase further during the current year. With the internal war in Iraq, the price of crude oil has gone up in the international market. This has led to the speculation that the prices of petroleum products will be increased in India as well.
However, it is understood that Prime Minister is determined about not raising the prices of petrol, diesel, and cooking gas, etc. So, discussions are being conducted about the possibility of reducing the special customs Duty on petroleum products.
Currently, the special customs Duty on petrol is Rs. 9.48 per litre and for diesel, it is Rs. 3.56. If this is cancelled, the price of petrol will reduce by Rs. 1/- per litre and kerosene by Rs. 2/- per litre.
Hence, if the special customs duty is withdrawn, there is a scope of price reduction in petrol by Rs. 1/- per litre.
Presently, diesel is sold at a loss of Rs. 2/- per litre by the vendors. Hence, there may not be much scope for reduction in diesel prices.
It is worth noting that the central government earns up to Rs. 25/- per litre of petrol sold through different taxes.
