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Bhubaneswar: With no respite in sight from the increasing fuel prices, public dissatisfaction over the steep rise is growing day-by-day. Adding fuel to the fire, the Odisha Congress on Monday observed a six-hour-long bandh from 7 AM to 1 PM and staged ‘rail roko’ agitation across the State demanding an immediate reduction in fuel rates.
Customers who feel the pinch of a sharp rise in the prices of petrol and diesel often ask why the fuel rates are touching record highs in India while it is relatively low in other neighbouring countries. While there are several factors behind the steep rise in fuel prices, let's have a look why petrol and diesel of Rs 32-34 per litre cost people nearly Rs 90.
As per break up of prices in India today, the base price of petrol is Rs 32.43 per litre (ex-depot price). The central government imposes Rs 32.98 tax per litre of petrol while the State government levy Rs 20.91 value-added tax (VAT) per litre of petrol. Similarly, the commission of dealer per litre of petrol is Rs 3.36. In this way, the selling price of petrol is Rs 89.68per litre.
Similarly, the cost of crude oil and refining is Rs 34 on which the Centre and State government impose taxes of Rs 31.83 and Rs 18.41 respectively. The dealer commission is fixed at Rs 2.21 per litre. With all these taxes and other expenses, the selling price is Rs 86.45.
"While the prices of the crude oil are Rs 32 to Rs 34 as per the international market, the taxation by Centre and State government increase the selling to around Rs 90. It is a simple calculation that Rs 53 to Rs 54 extra is being paid per litre of petrol on an average," said Sanjay Lath, general secretary of Utkal Petrol Pump Owners' Association.
Speaking about the fuel price hike, Congress MLA Tara Prasad Bahinipati said, "If the central excise and State VAT are reduced, people can get diesel and petrol at Rs 40-50 per litre. We demand the Centre and State government to cut the taxation on the fuel immediately."
(Edited By Pradeep Singh)
