Whenever you go to fill petrol or diesel at petrol pumps, they are always forced to think that why the prices of petroleum products will not decrease, will also decrease, the biggest share of the government's earnings comes from right here. In comparison to the actual base price of petrol, the common man has to pay almost double the price. Taxpayers have imposed more than 100% tax in comparison to the actual tax rate.
Under the central government's GST, the total indirect tax collection comes from half the cost of petrol and diesel consumers. According to the figures of Indian Oil Corporation, the actual base price of petrol is Rs 33.91 per liter whereas retail price for the common man is Rs 72.96 per liter. From the excise duty of the Central Government to the value-added tax of the states, this difference is increased due to VAT.
Diesel and petrol prices are revised on a daily basis since June 16, 2017. A total of 35.5 rupees is taxed on petrol, it has 20 rupees excise duty and 15.51 VAT. In addition, 3.56 dealers are commissioned. VAT is different in every state, so prices in each state also differ.
Since 2014, excise duty has increased 10 times on petrol and diesel and it has reduced only two times. Finance Minister Nirmala Sitharaman has imposed Rs 2 per liter on excise duty and road infrastructure cess. Apart from this, import duty of crude oil has been fixed at Rs. 1 per tonne, which will benefit the government on an annual basis of 28000 crore.
The petroleum product is the most exportable item in 2018-19. Its share is 14.1 per cent in total exports. 2018-19 Crude oil has the highest share of 22.2 percent in imports. After this, share of gold and other metals was 6.4 percent and pearl and other precious stones accounted for 5.3 percent. It is clear that the government does not want to reduce its earnings, so many different types of tax and cess are being imposed on petroleum products.
