Petrol, diesel prices scale new highs on rupee woes

Daniel Fowler
September 11, 2018

It also makes it clear that it is only due to the taxes levied by the Centre and the additional value added tax by the states that the fuel is becoming a priced commodity for domestic users. Diesel rate touched its highest level of Rs 72.51 a litre. "We pass on over 40% of the taxes that we collect to the states". Of this, 50 per cent is non-oil and 50 per cent is oil.

"The only way taxes on oil can be brought down is by increasing non-political tax-GDP ratio".

"Between 2014 and now, excise duty on petrol has risen by 211% and 433% on diesel".

In countries which are tax compliant, oil is taxed at a rate which is less than that in India.

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Offices were opened on time and official work was not affected at the Delhi Secretariat due to Bharat Bandh, an official said. Kerala also has the ninth highest sales tax and other state levies on diesel, at 23.81 per cent; Andhra Pradesh imposes the highest at 28.08 percent (it had recently reduced it from 30.82 percent). "If we expand the tax base in the same proportion as we did past year, then non-oil GDP ratio will go up", he said.

The state government also announced a holiday for schools and colleges in Bengaluru on Monday as a precautionary measure.

In the 13 days between August 29 and September 10, petrol and diesel prices have risen daily; in the case of petrol from Rs 81.45 to 84.06, and in the case of diesel from Rs 74.74 to Rs 77.98.

Led by Congress, the parties have demanded that fuel prices be brought under the ambit of Goods and Services Tax (GST), which will bring down prices by Rs 15 to Rs 18. "Inflation was 4.1 per cent in Vajpayee government, 5.8 per cent in UPA-1, 10.4 per cent in UPA-2 and in current NDA around 4.5 per cent average". Instead, more states are expected to reduce VAT, which will lower prices without impacting the Centre's tax collection. The Bharat Bandh was peaceful in Madhya Pradesh, said Makrand Deuskar, IG Law & Order, Madhya Pradesh on Bharat Bandh The Bharat Bandh was peaceful in the state, 110-115 people have been arrested. However, as the bars in the infographic sought to depict the prices of petrol and diesel, it went wrong by using a smaller bar to denote a higher price. "Similarly, the excise duty on diesel was ₹3.46 per litre and today it stands at ₹15.33 per litre", he said.

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