Dilemma of oil prices under Modi govt.

Rising Prices of petrol and diesel were the main reasons that brought down the UPA government of Manmohan Singh , whom the then Gujarat CM Narendra Modi had described as a " sardar who is not asardar". BJP went on to call Bharat Bandh by joining hands with Left Front against petrol prices, disrupting  Parliament too over this issue.

 

Currently the base prices of petrol and diesel is Rs.18.28 and Rs.18.78 respectively. Bifurcating it further, Central taxes (excise duty) on petrol and diesel stands at Rs. 32.98 and Rs,31.83 per litre, respectively, while Delhi levies a VAT of Rs.16.44 per litre on petrol and Rs.16.26 per litre on diesel, effectively taking the total tax component on the two auto fuels to a staggering rate of 75% (approx)

Petrol Price to customer - Rs.71.26

Base Price - Rs.18.28

Excise duty (Central) - Rs.32.98

VAT(State) - Rs. 16.44

A small part of the fuel price also goes as dealer's margin and frieght charges.

 

However, the 75% taxes are exceptional case due to recently hiked Excise duty by the government to offset the losses suffered due to CoronaVirus crisis.

The government hiked Rs.10 and Rs.13 per litre taxes on petrol and diesel respectively. In normal days, the ratio of taxes is usually 55% per litre price charged to the customers.

While the government has kept the customers away from enjoying the real benefits of lower fuel prices, it has kept its tax collections strong. The Centre collected over Rs.214000 crore from excise duty in the oil sector in 2018-19 and has already collected over Rs.150000 crore in the nine month period of the current fiscal..

So, the question is if BJP and NDA were so concerned about the oil prices when the UPA  government was there as they were went on announcing Bharat Bandh, disrupting parliament sessions then what happened now.. Is Prime minister Modi does not know about the oil prices in the country now? Who is answerable to the people now?

Okay!! We understand that the prices are hiked due to Corona outbreak and in this situation of economic crisis , government needs to collect revenue from the public only but where does the money of the pm cares fund gone then? There are lakhs of crores of donations there as well and who ensure that after the situation come back to normal, prices too gets normal . But how can we believe that government lowered them . Well!! Thats a myth!! Once the price gone up, it will never lowered till now. Nobody saw such things happened in recent times that government ever want to talk about or work on inflation, economy and failures of the government and if one could tried to talk on it, he would rather consider anti national !!!

Still hoping for the best!!

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