Petrol and diesel, these two terms are very popular in the year 2021 because of regular prices increasing, but the point of center in this great popularity is UPA responsible for this? Further, we will discuss the reason for the steady rise in the price and also find out if the central government is incapable to do anything?
Why the price is Increasing?
Every pocket of the Indian who has a petrol or diesel vehicle is swayed by this increment or can increments. The Union minister of petroleum and natural gas Dharmendra Pradhan presented the reason for these increasing prices due to global crude prices.
As recently in the international market, we all have witnessed a jump in crude oil prices. In our country, we have to import 80% of the oil on the behalf of our consumption.
Is there any shadow of UPA on price hike ?
The previous UPA government had left crores of oil bonds for repayment. And the prices of oil bonds including interest have to be paid by the current NDA government and as a result of this, the government has to increase the rates. This is a big reason for the rise in crude oil prices.
According to many economists, the price of the fule of the world can be down substantially if it comes under Goods and services tax(GST). Dharmendra Pradhan also pointed that it’s on the GST council to decide that the fule price should be induced under goods and services tax or not.
People on this rising price
The central government(NDA) is under very big pressure to cut high taxes on they are the reason for the increasing prices. But the government already showed its inadequacy to cut taxes on petroleum products due to high repayment prices of oil bonds left by the UPA government.
The amount game of Oil bonds and interest
The amount of oil bonds is about 1.34 lakh crores and some reports say that the central government gained 13.70 lakh crores with excise duty between the period April 2015 to March 2021 and a big part of this is from the year 2021.
In October the excise duty on petrol was Rs. 9.482 and now its Rs. 32.90 that shows an increment or can say a massive increment of 247.02%. It’s nothing in front of diesel price as it has an increment of 800%.
In just three months of 2021, the central government earned 94,181 crores and the interest of the old bonds principle value is 10,000 crores. The Central government earned more than 13 lakh crores till now with files and in the year 2021 they earned around 4 lakh Crores, said by the central government in the parliamentary session.
Government now enjoying the taxes?
When the Goods and service tax (GST) was introduced then fuels, liquor, and human resources were not included because the GST would decrease the tax revenue.
And when the pandemic came the government got the benefit of its decision and increased the tax according to the requirement. The state government increased the Value added tax(VAT) and the central government increased the excise duty. Then there was a need and now the government had already collected a great amount of revenue.
The government has already collected lakhs of crore but they are reducing the taxes. The state government has a compulsion because they have fewer sources of taxes as compared to the central government. The center has many sources of tax so they can cut off the tax on petroleum products.
As the whole figure shows that the UPA government has left the oil bonds of about 1.34 lakh crores which makes the interest of 10,000 crores and the central government earned 13.70 lakh crores between April 2014 to March 2021 and also 94,181 crores in just three months of 2021. So we can differentiate that the oil bond is a reality or propaganda to defend.
A few months ago the increment in the price of the fuels was the requirement to maintain the revenue but now it has to stop, as now it concerning the pocket of every citizen of India.