Apart from the corona virus and its vaccine, if there is any other big question at this time, it is that when will the price of petrol and diesel in India be? Petrol and diesel prices are at their highest level in India right now. It is showing steady growth. In such a situation, the question arises that by how long can the price of petrol and diesel in India be reduced?
Petrol and diesel prices are being increased continuously amid rising crude oil prices in the international markets. It is not that only international crude oil prices are rising. That’s why the prices of petrol and diesel are increasing in India! There are many other reasons for this as well.
petrol and diesel prices in india
Petrol and diesel prices in India have reached their all-time high. Petrol and diesel prices have gone above ₹101 in many cities. In which Rajasthan, Maharashtra, Tamil Nadu and other states of the south are included. Apart from this, the prices of petrol and diesel have also reached above ₹ 100 per liter in Madhya Pradesh. Where petrol has gone above ₹ 100 per liter. At the same time, diesel has also reached above ₹ 95 in most cities.
Experts are saying that the price of diesel in India may soon reach above ₹ 100. However, today there has been no increase in the prices of petrol and diesel in India. But this will not continue for long. And once again, experts are looking at the possibility of continuing the increase in the prices of petrol and diesel for a long time.
The world’s most expensive petrol and diesel is currently being sold in India. Let us tell you for information that at this time international crude oil prices have reached above $ 71 per barrel. The same experts are saying that in the coming time, crude oil prices can cross the psychological level of $ 80 per barrel.
Why are the prices of petrol and diesel rising in India?
Crude oil has reached its highest level of last 3 years at this time. At present, the international crude oil prices have reached above $71 per barrel. India is the largest buyer of Brent crude. And its prices are at their all-time high. Apart from Brent crude, the prices of crude oil imported from America are also running around $69.
Apart from this, petrol and diesel are taxed the highest in the world in India. Due to this also the prices of petrol and diesel are increasing continuously. In India, 1 liter of petrol and diesel is taxed from ₹ 60 to ₹ 64. This includes the tax of both the central government and the state government. Apart from this, petrol and diesel are not under the purview of GST in India. Because of this, its prices are very high.
Experts say that both the central and state governments do not have much revenue options. In such a situation, in the coming time also, petrol and diesel will be brought under the purview of GST! Nothing can be said about it.
Recently, India’s Petroleum Minister Dharmendra Pradhan was asked a question about the increasing prices of petrol and diesel. In response, Dharmendra Pradhan said that the price of petrol and diesel in India is due to the rising international crude oil prices. He said that if international crude oil prices come down, then the price of petrol and diesel in India may come down.
When Dharmendra Pradhan is also asked whether petrol and diesel will be brought under the purview of GST or not? In response to this, he said that whether petrol and diesel will be brought under the purview of GST, the decision will be taken by the GST Council. The decision is not in my hands. However, he said that I believe that petrol and diesel should be brought under the purview of GST.
OPEC+ countries, the largest producers of crude oil, have decided that there will be no sudden increase in the production of crude oil.
However, now the effect of corona virus is decreasing on the world. And the unlocking process has started. In such a situation, the demand for crude oil is going to increase even more internationally in the coming days. In such a situation, the price of crude oil may also see an increase in the coming time. Experts are also making the same guess. Experts say that in the coming days, the price of crude oil can go above $ 80 per barrel. In such a situation, the price of petrol and diesel in India can reach from ₹ 125 to ₹ 130 per liter. Which will be the most valuable ever.
Growing revenue deficit of the Government of India
The revenue deficit of the central government has reached its highest level due to the corona virus epidemic. In such a situation, to reduce this, the prices of petrol and diesel are being increased continuously. Apart from this, no other option is visible to the central government at this time.
According to an estimate, at present, the revenue of about Rs 294000 crores is generated from petrol and diesel every year, together with both the center and the state. In such a situation, the central government is not ready to give up such a huge revenue easily. However, experts say that if the tax and cess levied on petrol and diesel in India is not reduced, then there is no possibility of reduction in the prices of petrol and diesel.
Income from petrol and diesel
If we talk about the income from GST in India, then it has been around 102000 crores in this quarter. Which is just a little more than the psychological level of one lakh crore.
Experts are speculating that due to the mini-lockdown in India and the lockdown imposed by the state governments at their level, it may see an even greater reduction. Experts are saying that even more reduction can be seen in the coming GST collection figures. This time the GST collection is estimated to be around Rs 90000 crores. Which is much less than the previous 102000 crores.
When GST was implemented in India, it was expected that GST would generate huge income for the Government of India and it was expected that its collection would be more than Rs.150000 crores. However, it has not happened even once, when the collection of GST has been ₹ 150000 or more.
There is a continuous ups and downs in the revenue collection of GST. There has also been a decrease in the generation of the same e-way bill. At present 1200000 e-way bills are being generated in India every day. Which is the lowest level ever. In such a situation, the central and state governments have no other option but to increase the tax on petrol and diesel and increase the prices. Until the GST collections stabilize and cross the psychological level of 150000 crores. Till then it is difficult to say whether petrol and diesel will be included in GST.