The government in India is not willing to reduce taxes on Petrol and Diesel fuels. According to a report published in The Economist Times, domestic rates of Petrol and Diesel again rise on Thursday to a record high.
State Oil Companies have increased prices of Petrol and Diesel by 25 paise and 30 paise a litre respectively. The price of Petrol reached Rs 87.85 per litre while the price of Diesel reached Rs 78.03 per litre in Delhi while the price of Petrol in Mumbai is Rs 94.36 per litre while Diesel is priced at Rs 84.94 per litre.
There is 63% rise in crude oil rates since the starting of November. Moreover, the production cut by Saudi Arabia and other producers amidst increase in demand due to the roll-out of Covid-19 vaccines. It is currently trading over $61 per barrel.
The increase in the price of Rs 6.79 and Rs 7.57 of Petrol and Diesel respectively since the beginning of November has hit the commuters hard across the nation. According to reports, the increase in the price of fuels is dependent upon international price of crude oil, movement of rupee, margins of retailers and taxes imposed by the government.
The central and state taxes comprise 60% of retail rates. Dharmendra Pradhan, the Oil minister has expressed no such decision to reduce the taxes while the consumers are demanding tax cut on fuels.
During the crash in oil prices in the beginning of last year, the government of India had raised taxes by Rs 13 per litre and Rs 16 per litre on Petrol and Diesel respectively.