This is why consumers will continue to feel the pinch on petrol bills
PremiumPetrol and diesel prices remained unchanged in all four metros for the 31st consecutive day today
It may take a while before domestic petrol and diesel prices reduce unless the government takes a call on either lowering fuel taxes. But that does not seem anytime soon as Finance Minister Nirmala Sitharaman remained non-committal on cut in excise duty on petrol and diesel.
Petrol and diesel as well as cooking gas and kerosene were sold at subsidised rates during the previous Congress-led UPA government. Instead of paying for the subsidy, the then government issued oil bonds totalling ₹1.34 lakh crore to the state-fuel retailers. These oil bonds and the interest thereon are being paid now.
"If I did not have the burden to service the oil bonds, I would have been in a position to reduce excise duty on fuel," PTI quoted Sitharaman as saying.
"Previous government have made our job difficult by issuing oil bonds. Even if I want to do something I am paying through my nose for the oil bonds," she added.
Sitharaman said the Centre has kept open the option of inclusion of petroleum products under the Goods and Services Tax (GST) regime. "Whenever states agree on this, it can be brought under the GST."
Inclusion under GST would mean subsuming excise duty and VAT (levied by states) into one tax. This would help contain the cascading impact of tax-on-tax (VAT being levied on excise duty).
Petrol and diesel prices remained unchanged in all four metros for the 31st consecutive day today (August 17, 2021). Petrol prices were steady at ₹ 101.84 per litre and diesel rates were unchanged at ₹ 89.87 per litre in Delhi, according to Indian Oil Corporation. In Mumbai, petrol prices stood at ₹ 107.83 per litre, while diesel is retailed at ₹97.45 per litre.
Fuel prices have been rising since May as state-run oil marketing companies (OMCs) increased the frequency of hikes due to firming international crude oil rates.
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