New Delhi: Petrol and diesel prices are rising continuously these days. The way fuel prices have increased in the year 2021, petrol and diesel prices have reached their all time highs. The Modi government at the center is facing all round criticism on this issue. There should also be criticism, because this government came to power strongly raising the issue of rising inflation and today this government is silent on the wildly rising prices of fuel.

Do you know how you are getting 32 rupees petrol at this high cost. The price of petrol and diesel in India is determined on the basis of excise duty, excise duty tax, VAT of companies, refinery charge, freight charge and dealers' commission in addition to crude oil. For example, on 16 February, the basic price of petrol in Delhi was Rs 31.82 per liter, but after that it was increased to 89.29 after adding excise duty of Rs. 32.90, dealer commission of Rs. 3.68, VAT tax of Rs. 20.61 and transport duty of Rs. 0.28 paise. The diesel was sold at 79.70 per liter in the capital on that day, while its basic price was only 33.46 rupees, but after adding excise duty of Rs. 31.80, dealer commission of Rs. 2.51, VAT tax of Rs. 11.68 and transport duty of Rs. 0.25 paise, it was priced at 79.20. was. According to the website of Indian Oil, petrol is being sold in Delhi today at Rs 90.93 and diesel at Rs 81.32 per liter.

Talking about the increase in tax, then in January 2020, the excise duty was charged at 26.6% of the price of a liter of petrol and 23.3% of diesel. Today the central government levies an excise duty of Rs 32.90 per liter on petrol, while for diesel it is Rs 31.80. The tax (VAT) of the state government is linked separately, which is different for all the states, but if its average is seen, then it is about 20 rupees per liter on petrol, while about 12 rupees on diesel.

What could be the reason?

The international market also plays a big role in increasing the prices of petrol and diesel. If there is an increase in the prices of crude oil in the global market, then it directly affects the prices of petrol and diesel. Talking about the lockdown imposed due to Corona, then there was a huge fall in the price of fuel due to non-running of vehicles etc. The crude oil production suffered a major setback during the Corona epidemic. People were locked in their homes and fuel usage in vehicles and industry was very less. The worldwide lockdown had a direct impact on the crude oil producing countries. Due to this, there was a huge fall in the prices of crude oil globally, due to which petrol and diesel prices were reduced in many countries. During that time, petrol in the country's capital Delhi was selling at 69.59 per liter and diesel at 62.29 per liter.

After the lockdown opened, fuel consumption increased rapidly and crude oil prices too. At the beginning of the Corona epidemic, the price of crude oil reached the level of $ 20 per barrel. But after that it started increasing and by October last year it crossed the $ 40 per barrel mark and talking about today, crude oil is selling above $ 60 per barrel, which also affect the fuel prices. It is also important to mention here that, when crude oil is expensive, the oil companies increase the fuel prices by citing the rising prices, but it does not allow the benefit of the crude oil to reach the consumer, ie petrol diesel prices do not reduce or make profits by making minor cuts.

What can the government do?

It is well known that the state of the economy of the country is presently up, even during the Corona epidemic, the treasury has suffered a big blow. The government's revenue has come down drastically as economic activity stalled in the lockdown. The government is trying to fill that deficit with the revenue from petrol and diesel. This could be one of the reasons why the government is not in the mood to reduce the tax on fuel despite heavy opposition.

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