Rising fuel prices pile on agony after Covid blow

BHOPAL: The unprecedented levels of petrol, diesel and LPG prices are complicating the family budgets — which are already strained due to the Covid effect.

The LPG prices were raised twice in December — with a domestic gas cylinder costing Rs700.
The fuel prices are at an all-time high. Petrol is inching close to Rs100 and diesel is following closely behind.
The price rise has been attributed to the increasing crude prices in the international market, however, neither the Centre nor the state is prepared to lower taxes of petrol and diesel — which is hiked every time the crude oil in the international market gets cheaper.
“Taxes on petrol and diesel are hiked because thery are an easy way to mop up revenue for the governments-- Centre and states. The lower the international price, the higher is the taxes. It is also sai by some to be a way to prevent hoarding of the commodity.
Whether you take the receipt or not it doesn't matter. The petroleum companies know the amount of petrol and diesel allotted to a pump and how much of it was sold.
Therefore, whenever the government wants to hike its revenue, an increase in taxes on petrol and diesel is the easiest way out,” said president of MP Petrol Pump Owners' Association, Ajay Singh.
He added, “Out of the prices that you and I pay for a litre of petrol, 58 % goes as tax to the Centre and the state government. For diesel, it is a little less but still exorbitantly high,” he added.
Singh said, the state government should at least fix the tax on petrol and diesel in rupee per litre as the Central government does because tax in percentage leads to people paying additional amount to the state government, too, when excise duty is raised by the Central government.
“If the Central government raises the excise duty by Rs1 per litre, the state government starts getting 39 paisa additional because it calculates its tax in percentage. Let them also decide that they would have a particular amount of tax on the sale of every litre of petrol or diesel. They may raise the amount from Rs22 per litre to Rs24 but it will be done once,” he said.
People on the other hand, particularly those from the middle class or lower middle class, are hassled over increasing prices of petrol, diesel and LPG but seem to have accepted it as part of the new system, where subsidy on such things is being withdrawn.
“Prices of petrol, diesel and LPG are taking a heavy toll on the domestic budget of middle class families but it is not like we have any option. These are essential commodities,” said B R Sharma, a government servant.