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The tax on fuel increased wildly! Otherwise, even today petrol would have been sold for Rs 66 per liter and diesel would have been sold for Rs 55 per liter.

In 2014, the price of crude oil (petroleum) was Rs 6358 per barrel, while it was Rs 3,918.56 per barrel in January 2021 and 5,108.73 per barrel in August 2021.

Fuel prices have increased for some time now. The reason is an increase in tax. if an increase in tax on petrol and diesel Had it not happened, it would still have been available for Rs.66 and Rs.55 respectively. In fact, in the last few years, the central government increased the tax on petrol and diesel significantly. For example, in 2014, oil marketing companies (OMCs) sold petrol to dealers at Rs 49 per liter. After dealer margin and central and state-level taxes, its retail price increased to Rs 74 per liter.

In this case, OMCs got 66 percent of the final price, while 34 percent went to the dealers, central and state governments. Now the share of OMCs has fallen to 42 percent, while dealer commission and tax have increased to 58 percent. The biggest increase was in central taxes, which have increased from 14 percent of the retail price in 2014 to 32 percent now. The share of the state government also increased from 17 percent to 23 percent during the same period. In such a situation, if the tax rates were at the level of 2014, then still the price of petrol would have been around Rs 66 instead of 100+.

Amidst the double whammy of Corona and inflation, the skyrocketing oil prices stunned the common man, but it emerged as a bonanza for the Centre. This is because the Center earned a lot due to high taxes on petrol and diesel. There was an increase of 164 percent in the tax collection of the Center. This amount was Rs 1.7 lakh crore in 2014-15, which increased to 4.6 lakh crore in 2020-21. States’ collections also remained more or less stable since 2017-18 (when they crossed the two lakh crore mark).

‘High oil prices will hurt global economic revival’: Meanwhile, India, the world’s third-largest energy consumer, has told Saudi Arabia and other OPEC member states that high oil prices will hurt the world’s economic revival. A senior official said on Monday that OPEC should keep oil prices at a reasonable level. Petrol and diesel prices in the country have hit record highs after crude oil prices started increasing from May this year, while India imports nearly two-thirds of its oil needs from West Asia.

(Photo + Data Source: statista.com)

Congress surrounded the Modi government: Former Congress president Rahul Gandhi and party general secretary Priyanka Gandhi Vadra took a dig at the Narendra Modi government over the rise in oil prices. Said that the prices of petroleum products have been increased to such an extent that now it has become difficult even for the people of the air chappals and middle-class people to travel on the road. Let us inform you that in the year 2014, the price of crude oil (petroleum) was Rs 6358 per barrel, while it was Rs 3,918.56 per barrel in January 2021 and 5,108.73 per barrel in August 2021.

Also Read: Petrol fires, PM Narendra Modi told the names of previous governments without naming

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