The government in India is not willing to reduce taxes onPetrol and Diesel fuels. According to a report published in The EconomistTimes, domestic rates of Petrol and Diesel again rise on Thursday to a recordhigh.
State Oil Companies have increased prices of Petrol andDiesel by 25 paise and 30 paise a litre respectively. The price of Petrolreached Rs 87.85 per litre while the price of Diesel reached Rs 78.03 per litrein Delhi while the price of Petrol in Mumbai is Rs 94.36 per litre while Dieselis priced at Rs 84.94 per litre.
There is 63% rise in crude oil rates since the startingof November. Moreover, the production cut by Saudi Arabia and other producersamidst increase in demand due to the roll-out of Covid-19 vaccines. It iscurrently trading over $61 per barrel.
The increase in the price of Rs 6.79 and Rs 7.57 ofPetrol and Diesel respectively since thebeginning of November has hit the commuters hard across the nation. Accordingto reports, the increase in the price of fuels is dependent upon internationalprice of crude oil, movement of rupee, margins of retailers and taxes imposedby the government.
The central and state taxes comprise 60% of retail rates.Dharmendra Pradhan, the Oil minister has expressed no such decision to reducethe taxes while the consumers are demanding tax cut on fuels.
During the crash in oil prices in the beginning of lastyear, the government of India had raised taxes by Rs 13 per litre and Rs 16 perlitre on Petrol and Diesel respectively.