Mumbai will be first metro to see diesel at Rs 100 due to high taxes


NEW DELHI: Mumbai, India’s financial capital, will in a day or two win the dubious distinction of becoming the first metropolis to see diesel century hit, as high state taxes amplify the impact of high crude.
The price of diesel stood at Rs 99.92 a liter on Friday in Mumbai after the latest round of retailers review since Sept. 24. Following the trend of price revisions by retailers, the price is expected to hit the Rs 100 mark in a day or so.
Mumbai had become on May 29 the first subway in the country to see gasoline It turned a century since it taxed fuels the most among the ‘Big Four’.
While the price of Rs 100 per liter has become normal for gasoline since February, diesel surpassed the Rs 100 mark on October 1 in various cities in Rajasthan, Madhya Pradesh, Odisha, Telengana and Andhra Pradesh, all states with tall VAT. The price stood at Rs 106.03 a liter in Rajasthan’s Sriganganagar on Friday, the highest in the country.
High diesel prices will fuel inflation as it is consumed primarily by the transportation, agriculture and construction sectors, which has a cascading effect. Politically, record diesel prices may raise the ire of farmers, who are campaigning against the Center’s farm laws, ahead of the crucial UP assembly vote.
Fuel prices entered a wave of records after a 67-day gap since July 17 when retailers began to hike pump prices after crude tested a three-year high of $ 80 a barrel last month.
While high oil prices are a factor, the real reason consumers are paying through their noses is last year’s sharp increase in Central excise taxes and VAT in the states, which are amplifying the impact for consumers.
The Center increased excise duties by 13 rupees on gasoline and 16 rupees on diesel between March and May last year, when oil prices collapsed due to the pandemic. The two increases increased excise duty by 65% ​​on gasoline from Rs 19.98 to Rs 32.98 per liter and 79% on diesel from Rs 15.83 to Rs 28.35. VAT is collected as a percentage and increases each time the base cost increases.
The sharp increase in taxes boosted the Center’s tax collection on gasoline and diesel in 2020-21 increased by 88% to more than Rs 3 lakh crore, a record led by a 108% increase in diesel cleanup, despite lower sales due to the pandemic.

Source link


Please enter your comment!
Please enter your name here