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Petrol Prices today: In Mumbai, a litre of petrol and diesel costs Rs 107.83 and Rs 97.45
Over the past few months, very few things have hurt the common man’s interest as the prices of petrol and diesel have. It has not only increased transportation costs but has also triggered all-round price hike of different commodities raising the cost of living at times when millions of jobs are lost, wages slashed and lakhs of small businesses ruined.
On June 17, the first step in the long and vexatious journey of reducing taxes on petrol and diesel might be taken. A parliamentary committee is supposed to meet on June 17 to discuss the rising prices of petrol and diesel.
According to Lok Sabha website, the meeting of petroleum and natural gas standing committee is scheduled in the morning.
The panel is headed by Bharatiya Janata Party (BJP) leader Ramesh Bidhuri.
The meeting is supposed to take oral evidence of representatives of the ministry of petroleum and natural gas, and oil marketing companies on the subject ‘pricing, marketing and supply of petroleum products including Natural Gas’.
Revenue compulsion
Last week, Union petroleum minister Dharmendra Pradhan admitted that rising prices are creating a problem but said the government is using the proceeds to spend on welfare schemes.
Earlier, Union Finance Minister Nirmala Sitharaman called the issue a dharam sankat.
Centre and states
The villain in the price of petro prices rising through the roof are the taxes that both the Centre (excise) and state governments (VAT) collect.
These taxes account for more than 60% of the retail price of petrol and diesel. No wonder, among all countries, these items are taxed the most in India.
In the past six weeks, prices of both fuels have risen 25 times. Petrol has become costlier by Rs 6.26/litre while diesel has become expensive by Rs 6.68 since May 4.
Up 300%
In March, the Lok Sabha was told that the Centre’s tax collections from this source went up by 300% in the past six years.
The share of the states is not negligible in any way. Though each state is free to choose it own rate of taxation, it ranges between 25% and 30% and in some states goes even higher.
GST
Though the issue of bringing petrol and diesel under the purview of the GST has been discussed in various forums, it in unlikely that any government will push the issue in the GST Council in written since the products rake in huge revenues for governments at all levels.
Former Bihar Deputy Chief Minister Sushil Modi, who is also considered an expert in GST matters, has remarked that no state would push for petro products to be brought under GST since none can afford to lose revenue.