It has been understood that the central government is in no mood to reduce the prices of petrol and diesel in the near future. While it was expected that the central government will cut down on its excise tax to help the common public mitigate the price rise, it has been a case where the central government is expecting the states to reduce the state VAT over petrol.
In the past 55 months, Petrol and Diesel prices have hit an all time high of 74.50 Rs per litre and 65.75 Rs per litre in Delhi. As there are issues with the central budget planning expenditure, there are no chances of reducing excise taxes, as said by several key members of the finance department. While the indigenous production deficit has been 3.5%, the finance ministry has been aiming to reduce it down to 3.3% and hence, there won't be any announcements of reduction of prices of petrol and diesel in the coming days.
The excise duty imposed by the
center on Petrol is 19.48 Rs per liter and on Diesel is 1533 Rs per liter.
Besides, the VAT is an additional pain, as for example, in Delhi, the VAT for
petrol is 15.84 Rs/ liter and Diesel is Rs 9.68/litre. With such excessive
taxes imposed by both the center and state, it is going to be a tough time
ahead for the public.
