The diesel price has climbed to the highest level on record at Rs 80.78 a litre in Delhi.
After a massive increase in petrol and diesel prices in the last one month, the diesel price has climbed to the highest level on record at Rs 80.78 a litre in Delhi. The diesel prices are still higher than that of petrol in the national capital. The petrol price has been unchanged for the 8th straight day, but it continues to hover above Rs 80 per litre mark, according to Indian Oil Corporation Limited (IOCL). After increasing diesel prices 23 times and petrol prices 21 times in the last one month, the cumulative increase has been Rs 9.17 per litre for petrol and Rs 11.39 per litre for diesel in the national capital.
In Mumbai, the petrol price has skyrocketed to Rs 87.19 a litre and the price of diesel is Rs 79.05 a litre. While the businesses and economy are not generating enough revenue, the government is knocking the doors of fuel tax to offset the revenue loss. Given the importance of petroproducts in the government’s revenue, it appears that the government would rather not cut the tax rates as it would impact revenue collections, Care Ratings had said in a report.
The central government had garnered Rs 4.23 lakh crore in excise duty and VAT collection on petroproducts during the last fiscal year 2019-20, which was 78 per cent of its total excise revenue. The remaining excise duty collection came from crude oil cess and customs; royalties; and CGST.
After the crude oil prices in the international market rolled down to record low due to the low demand during the coronavirus-led global lockdown, the Indian government raised excise duty by a record Rs 10 per litre on petrol and Rs 13 per litre on diesel to garner Rs 1.6 lakh crore additional revenue. With the increase in duties, the government forced the fuel consumers to pay over 250 per cent collectively in excise duty to state and centre. However, at one end, where the government is distributing cash to the poor section of the society, on the other end, citizens are forced to shell out a fortune to buy petrol and diesel.