Truth of hike: BJP talks about percentage increase in petrol, diesel prices

Truth of hike: BJP talks about percentage increase in petrol, diesel prices

The Centre now levies a total excise duty of Rs 19.48 per litre of petrol and Rs 15.33 per litre on diesel.

Higher prices of diesel, the fuel used in trucks, also threaten to push up inflation, which could in turn force the central bank to raise interest rates.

Nearly half of the retail selling price of the two fuels is made up of central and state taxes. Petrol price Monday increased by 23 paisa a litre and diesel by 22 paisa a litre, according to the price notification issued by state fuel retailers.

While a cut in excise duty that the central government levies will impact fiscal deficit, states like Bihar, Kerala, and Punjab are not in a position to cut sales tax (or VAT), the official, who wished not to be identified, said.

Led by Congress, the parties have demanded that fuel prices be brought under the ambit of Goods and Services Tax (GST), which will bring down prices by Rs 15 to Rs 18. So, the prices would have fallen by one rupee only if the prices had remained at May 30 levels, which was Rs 82.62 a litre for petrol and Rs 75.19 a litre for diesel. The tax imposed by the Centre on petrol (including customs and excise duties, and other cesses) is 52.75 per cent, and on diesel is 38.53 per cent.

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With the title "Truth of hike in petroleum prices", the ruling party with the help of bar diagrams explained that the percentage increase in the rise of fuels in 2018 is less than the increase during the previous two terms. States saw their Value-Added Tax revenue from petro goods rise from Rs 1,37,157 crore in 2014-15 to Rs 1,84,091 crore in 2017-18.

In the state capital, the IT campus at Technopark is functioning and the ISRO units are also working as normal. "We pass on over 40% of the taxes that we collect to the states".

Mumbai has the highest tax rates among the metros. Here is the case of petrol: from Rs 9.20 a litre it shot up to Rs 19.48 per litre for petrol. The official said the four states which have supported Bharat Bandh collect high taxes themselves. However, as the bars in the infographic sought to depict the prices of petrol and diesel, it went wrong by using a smaller bar to denote a higher price.

"The government can not disturb fiscal maths by cutting excise duty", he said.

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