Thursday, 6 September 2018

Why petrol is expensive?

The common man in the country does not understand that when the cost of crude oil is currently 54 dollars per barrel in the international market then why is petrol sold 80 liters? When the price of oil was transferred to the market, then according to the market, prices should be determined accordingly.

The theory of economics also believes this. When crude oil is cheap, then why is petrol and diesel expensive in India? Since June 16, the government has implemented a system of fixing oil prices on a daily basis, but the consumer is being cheated every day. He did not get cheap petrol and diesel for a day.

In July 2014, when the Modi government came to power, the crude oil in the international market was 112 dollars per barrel, which is now below half. Petrol in Delhi was Rs 73.60 per liter in Delhi but today more than 70 rupees is today. In Mumbai, up to 80 liters. The question is, when crude oil is very cheap then why is the price of petrol increased? It is beyond the understanding of the common man.

The petroleum minister has made it clear that the government can not do anything in this case, because everything is in the hands of oil companies. With such remarks, it is clear that the government has left the common man in the trust of oil companies. At the same time, the Petroleum Minister further said that the GST Council should now consider bringing petroleum products to the realm of GST, which is not currently applicable.

It is also worth mentioning that after the GST was implemented, the items which were expected to be cheaper, are still getting expensive. There is no mechanism to look into it by the government. Due to such circumstances, if petroleum products were also taken under the purview of GST, then prices will not be controlled or not, which is not clear. Not only the game of petrol and diesel prices, but the common man understands properly.

The reality is that the state governments and the Central Government have made a way to fill their treasures through petrol and diesel. Governments are firmly charging excise duty. In this, the center fees are different and different from the states. If the center has refused to deduct the charges at present, then the cuts can not be expected from the states. Actually, the state, as much as the tax collected on the oil, is much more than needed.

Maharashtra is a state which charges VAT of 47.64 percent on petrol. At present, 26 states are charging more than 25 per cent VAT on petrol. This is their fat-earning mode and it is getting hit on the common man. In order to save their earnings, the states had opposed the introduction of oil in GST and they are not even expected to accept it.

The question is whether the common man will be hit by such oil? The answer to this question is to be given to the Central Government as all the oil games have been run. The crisis is that how the price of oil is fixed? No logic and transparent system has yet been created for this.

Suppose the oil companies were crying the deficit, the Center got rid of the problem by handing over the oil to the market. But now the loss of oil companies is also over, then the common man is being burdened. The common man is already being hit by the price of inflation. The whip of expensive petrol and diesel will be more on it.

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