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HIGHLIGHTS
- The last time petrol crossed 76 per litre, five years ago, crude oil was 40 per cent costlier before taxes
- Most fuel taxes are as percentage of price which means government’s tax earning goes up as price increases
NEW DELHI: For diesel and petrol, it's a record a day every day now. On Saturday, petrol touched the all-time high price since 2013. On Sunday, it beat its previous day’s record. On Monday, it created a new all-time record in Delhi and Mumbai by touching Rs 76.57 and Rs 84.40, respectively.
WHY ARE GLOBAL CRUDE OIL PRICES ON A RISE?
Production cuts by oil exporters, shrinking supplies from Venezuela and uncertainty over Iran’s contribution after U.S. decision to exit the nuclear deal have contributed to rise in crude prices.
However, there is a catch. The government might be blaming crude prices for record high petrol and diesel rates, but the last time petrol crossed 76 per litre, five years ago, it was 40 per cent costlier before taxes.
Fuel prices have shot up now because of very high taxes. Central tax on diesel has increased more than three-fold, and it has doubled in case of petrol. In 2016-17, the Centre earned 2.7 lakh crore from taxes and duties on petroleum products, which is 117 per cent higher than the 1.3 lakh crore it earned in 2014-15, when NDA came to power.
WHY ARE GLOBAL CRUDE OIL PRICES ON A RISE?
Production cuts by oil exporters, shrinking supplies from Venezuela and uncertainty over Iran’s contribution after U.S. decision to exit the nuclear deal have contributed to rise in crude prices.
However, there is a catch. The government might be blaming crude prices for record high petrol and diesel rates, but the last time petrol crossed 76 per litre, five years ago, it was 40 per cent costlier before taxes.
Fuel prices have shot up now because of very high taxes. Central tax on diesel has increased more than three-fold, and it has doubled in case of petrol. In 2016-17, the Centre earned 2.7 lakh crore from taxes and duties on petroleum products, which is 117 per cent higher than the 1.3 lakh crore it earned in 2014-15, when NDA came to power.
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