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Thursday, 17 December 2020

Petrol at Rs 1.5 in Venezuela; The more we buy, the more 2 liters in the crop. Petrol arrives

Bhaskar Data Story:Petrol at Rs 1.5 in Venezuela; The more we buy, the more 2 liters in the crop. Petrol arrives

In June 2010, the government decided that from now on petrol prices would be decided by the oil companies and not the government. After that, in October 2014, the right to fix the price of diesel was also given to the oil companies.

It was decided in April 2017 that daily petrol-diesel prices would be fixed from now on. It was argued that the rise and fall of crude oil prices would benefit the general public and oil companies as well. The general public did not benefit much from this but the profits of the oil companies increased.

At a time when crude oil prices were falling in the international market, governments increased their taxes by filling taxes and preventing the benefits from reaching the common man.

Now that crude oil prices are rising, neither governments are cutting taxes nor oil companies are cutting their profits. All the burden is falling on the common man. The situation is that our country has the highest tax on petrol and diesel in the world.

This is not what we are doing. Let's understand it through statistics. And let's find out why petrol-diesel prices do not go down in our country even after the fall in crude oil prices. How much tax is levied on petrol-diesel in different states? How much tax does the central government collect? In which countries of the world is petrol the most expensive and cheapest? How much do oil companies benefit?

First of all, crude oil ...

You realize we buy more than 85% of our crude oil from outside. This crude oil comes in barrels. One barrel means 159 liters. The price of crude oil in the international market is currently equal to mineral water.
According to the Petroleum Planning and Analysis Cell (PPAC), the price of crude oil on December 14 was Rs 3,705. Now if there is 159 liters in a barrel, a liter of crude oil costs Rs 23.30 while a 1 liter bottle of water costs Rs 20.

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Now that crude oil is cheap, why is petrol-diesel so expensive?

To understand this it is necessary to understand how petrol-diesel reaches from crude oil. The first crude oil comes from outside. It goes to the refinery, where petrol and diesel are extracted. This then goes to the oil companies. Oil companies raise their profits and deliver to petrol pumps.
The owner of the petrol pump attaches his commission after arriving at the petrol pump. This is followed by the tax levied by the Central and State Governments. After that, after adding all the commissions and taxes, petrol and diesel reach us.

Why is the price so high?

The biggest reason for the rise in petrol-diesel prices is the tax levied by governments on it. The central government imposes excise duty on petrol-diesel. The central government had increased excise duty in May this year. At present, excise duty is Rs 32.98 per liter on petrol and Rs 31.83 on diesel.
When the Modi government came to power in May 2014, excise duty was Rs 9.48 per liter on petrol and Rs 3.56 per liter on diesel. Excise duty has been increased 13 times since the Modi government came to power in May 2014. Has fallen only 3 times.

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Why are petrol-diesel rates different in different states?

Now let's move on to state taxes. The central government earned by levying excise duty and different taxes. Now the state governments also earn from you by levying VAT i.e. value added tax and sales tax.
The central government is the same, so the same excise duty will be levied across the country. But if the state is different, then the rate of VAT and sales tax is also different. At the same time, in some states, in addition to VAT-sales tax, other taxes are also levied. I.e. employment cess, green cess, road development cess etc. etc.

The Rajasthan government collects the highest VAT / sales tax in the country. Here 38% tax is levied on petrol and 28% tax on diesel. It is followed by Manipur, Telangana and Karnataka where petrol is taxed at 35% or more. Then there is 33% VAT on petrol in Madhya Pradesh. But at that time, the most expensive petrol in the state capital is Madhya Pradesh.

Now you say that if the tax is less then why the price is more? So the reason is that different types of cess imposed by different states with this tax increase the cost.

Why is there such a difference in price in different cities when the state government tax is for the entire state?

When petrol-diesel arrives at a petrol pump they charge a fare depending on how far the petrol pump is from an oil depot. For this reason, the rent increases and decreases with the change of city. This makes a difference in the price even in different cities.
For this reason, petrol was priced at Rs 91.46 a liter in Bhopal, the capital of Madhya Pradesh, on December 16, Rs 91.49 a liter in Indore and Rs 93.56 a liter in Balaghat in Madhya Pradesh.
This is the reason why both petrol and diesel are getting around Rs 70 a liter in the Andamans, which levy 6% tax. In Rajasthan's Sriganganagar, which has a 38% tax, petrol was sold at Rs 95.53 and diesel at Rs 87.15 on Wednesday.

Now let us know how much tax is levied on petrol-diesel in our country?
We have already understood above what is the base price of petrol-diesel and how much we get after tax. But did you realize that our country has the highest tax on petrol-diesel in the world.

According to Indian Oil Corporation, the base price of 1 liter of petrol in Delhi on December 1 was Rs 26.34, but they got us at Rs 82.34, which is 68% tax. Thus, the base price of diesel was Rs 27.08 and after tax it became Rs 72.42. That is, we paid 63% tax on diesel. In Madhya Pradesh, Rajasthan, the total tax on petrol is more than 70%.

Whereas, developed countries do not charge so much tax. Petrol-diesel is taxed at 19% in the US and 62% in Britain.

Now speaking of oil companies, how much has their profit increased?
Due to the increased tax, the government got excise duty of Rs 18,741 crore in the September quarter this year, with the country's three largest oil companies making a profit of about Rs 11,000 crore. Indian Oil, the country's largest oil company, posted a net profit of Rs 6,227 crore, Hindustan Petroleum Rs 2,477 crore and Bharat Petroleum Rs 2,248 crore in the September quarter.

Now let's come to the world ...
1 liter petrol of Rs 46 in Pakistan, about half of
us in our country, the price of petrol varies between states and cities. At present, petrol costs more than Rs 90 in some cities. In Madhya Pradesh's capital Bhopal alone, a liter of petrol costs Rs 91.59. In neighboring Pakistan, a liter of petrol costs Rs 46.37. This means that we buy 1 liter of petrol for the same amount of petrol there, that is 2 liters of petrol in Pakistan.

The cheapest petrol in Venezuela, the most expensive in Hong Kong
According to Global Petrol Prices, the cheapest petrol in the world is in Venezuela. The price of 1 liter of petrol here is only Rs 1.48. Is. However, there is also the fact that Venezuela has oil reserves. In countries that have oil reserves, petrol prices are lower. Thus, a liter of petrol in Hong Kong costs Rs 168.38. This is the most expensive in the world.

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