The excise duty on petrol rose from Rs 19.48 per litre as on October 5, 2018 to Rs 27.90 a litre as on November 4, 2021
All-India average prices have gone up by 7-8% to Rs 384-386 per 50 kg in October
During the month under review, the crude petroleum inflation was 80.57% as against 71.86% in September
A permanent solution to the runaway prices is possible only if petrol and diesel are brought under GST.
The estimated loss to the exchequer will remain in consumers’ pockets
As the propensity to milk petrol and diesel for revenue grew, Indians had to pay a retail price that was a huge mark up compared to the price of crude
There is an urgent need to reduce burden of taxes, especially on fuel, to provide relief to citizens battling the debilitating impact of Covid-19.
Anyone buying an electric vehicle would ask for charging points and service centres along the road.
Practice of future consumers subsidising current ones may be iniquitous (if they are not the same) but is useful to make difficult reforms acceptable
Ultimately, relief will have to come from a cut in VAT given the limited expenditure by states in the Covid year.