Spurt in fuel prices sees MP Govt laughing all the way to the bank

Bhopal: Due to the rapidly rising prices of petrol and diesel, the MP government earned Rs 190 crore more this fiscal from petrol and diesel sales, even after tax reduction. At the time of tax reduction in October last year, the state government had estimated a fall of Rs.1,000 crore in its tax revenue. The way prices of petrol and diesel are increasing daily, the state government’s tax revenues could reach a new high in the current year. Talking only about the month of April, the state government has earned 16 percent more revenue than last year.

Demand to reduce tax proportionate to rising prices

According to experts, the prices of petrol and diesel were falling when the state government increased tax on both to supplement their income that had reduced due to lower rate of taxation. An additional duty was also imposed. Experts say that in a situation when prices are declining, the tax should be reduced on both petrol and diesel.

Diesel price rose by 13.25%

Since January 01, 2018, diesel prices have seen an increase of 13.25 percent. Its price was Rs 62.37 per litre at the beginning of the year, which has now gone up to Rs 70.64.

Petrol price up by 7.54%

From January 1, 2018, petrol prices have gone up by 7.54 per cent. Earlier, the price was Rs 74.90 per litre, which has now reached Rs 81.23 per litre.

Crude costlier by 30%

There has been a steep increase in the price of crude oil since the year began. In the new fiscal year so far, the prices have risen by 17.14 percent. In January, the price of crude oil in Indian baskets was Rs 3,982 per barrel. It has increased to Rs 4,516 per barrel in May 2018. This is the level when the price of crude oil was $68 a barrel. At present, crude prices have risen to $76.43 a barrel. The exchange rate of dollar was Rs 67.79. On this basis, if the price of crude oil is calculated in Indian currency, it should be Rs 5,181 per barrel, a price increase of 30 percent since the beginning of 2018. A 14% rise happened only in the month of May. Oil companies have fixed the prices on the basis of Rs 4,516 per barrel