Excise on both diesel and petrol has gone up almost Rs 10 a litre between 2014 and 2018 and now stands at Rs 19.48 a litre on petrol and Rs 15.33 on diesel.
Today is the 15th consecutive day that the petrol and diesel prices have been hiked. In Delhi, Kolkata, Mumbai and Chennai, it is selling at Rs 68.75, Rs 71.30, Rs 73.20 and Rs 72.58 per litre respectively.
Market observers told The Hitavada that increased fuel price have started showing impact on many commodities.
This surge in fuel prices is largely attributed to the recent rise in crude oil prices and the high excise duty on the fuels in the country.
Bhubaneswar: Union Petroleum & Natural Gas Minister Dharmendra Pradhan on Thursday said the Odisha government should cut its value-added tax (VAT) on the fuel to control the rising prices of petrol and diesel.
After hitting a high of $84.47 on May 14, the brent crude oil prices have plummeted by almost $9 over the past fortnight.
For every rupee cut in excise duty on petrol and diesel, there is a Rs 13,000-14000 crore hit to the exchequer.
The government continues to increase oil prices on both occasions when crude prices go up as well as go down, appropriating the amount of differences that accrue due to fall in crude prices.
Pump price data provided by Experian Catalist shows that on 26 March a litre of unleaded petrol bought at the big four supermarkets averaged 116.66p and diesel was 119.35p. The government needs to provide relief to consumers, complaining not only of higher crude prices but also significantly higher taxes.
Indian Oil (IOC), the country's top refiner, will turn to its traditional oil suppliers, mostly in the Middle East, if US sanctions against Iran result in supply disruptions, its head of finance said. In other words, it pocketed the gains of low crude prices while transferring the pain of high crude prices to the consumers.
On September 17 of 2017, he said: We have appealed to all the states and finance ministry (to bring petroleum items under GST).