Making booze costlier by Rs 5 can bring down petrol price by Rs 3.30 per litre

Petrol price up by Rs 12 a litre in past one year; country liquor bottle costs only Rs 1.75 more

Bhopal: If the Madhya Pradesh government raises the licence fee of liquor outlets by just 9.30 per cent, it can bring down petrol price by Rs 3.30 per litre. This will increase the price of the smallest liquor bottle (175 ml) by just Rs 5.

Around seven lakh litres of liquor is sold in the state every day. This means, 25.50 crore litres a year. If the price of liquor is raised by just Rs 30 per litre, it would fetch an additional revenue of Rs 766 crore per year, thus allowing the government to abolish the Rs 4 per litre additional tax being imposed on petrol in the state. Around 230 crore litres of petrol is sold in the state every year, thus fetching the government an income of Rs 920 crore.

 

Liquor prices static

Interestingly, the prices of petrol and diesel were raised on 100 different occasions in the past one year while the price of liquor did not go up even once. Sources in the government say that the terms on which licences are issued to liquor outlets specify that the licence fee cannot be raised for a period of one year from the date is issuance of the licence.

Revenue  from fuel outstirp earnings from liquor

 

Year

Revenue from
petro products

Revenue from liquor

2011-12

4000

4317

2012-13

5000

5083

2013-14

5700

5908

2014-15

6832

6697

2015-16

7631

7926

2016-17

9160

7519

2017-18

9380

8223

(All figures in Rs ‘000 crores)

We are not in a position to reduce the price of petrol and diesel. We had done that some time back and the losses were more than Rs 2,000 crore -Jayant Malaiya, finance minister, government of MP

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