Petrol Diesel Price Hike: Petrol diesel prices have been stable for the last two days, but in the last 17 days, petrol diesel has become costlier by Rs 10 per liter. After getting permission from the central government, for the first time after November 4, 2021, government oil companies decided to change the prices of petrol and diesel and started increasing the prices of petrol and diesel from March 22. For two days, even though the government oil companies have pressed the Pause Button on increasing the price. But they can increase the price even more.
People’s household budget is getting spoiled by putting petrol diesel in car scooter bike. In such a situation, everyone wants to know how much more petrol and diesel prices will eventually increase. By how much more will the government companies increase the prices of both fuels. So let us tell you that this increase can continue till the time the loss caused by selling both the fuels to the government oil companies is not compensated.
How much more expensive will petrol diesel be
Government oil companies have increased the price of petrol and diesel by Rs 10 per liter. According to an estimate, state-owned oil companies will have to increase the price of petrol and diesel by a total of Rs 15 per liter, only then their loss will be compensated. Indications of this can be made from the fact that for the bulk diesel consumers, the government oil companies increased the prices of diesel by up to Rs 25 per liter. In the category of bulk diesel consumers, railways, roadways of state governments, malls, factories, housing societies come.
Issuing a report, it was said that due to the increase in international oil prices, state-owned oil companies need a huge price increase of Rs 12.1 per liter to eliminate the break-even loss. The report said that after including the margin for oil companies, the prices will increase by Rs 15.1. SBI had said in its research report that the government oil companies will have to increase the price of petrol and diesel by Rs 9 to 14 per liter to compensate for their loss. SBI had said this when the price of crude oil was around below $100 per barrel.
Petrol and diesel price hike maths
Now let us tell you how expensive crude oil is affecting the treasury of government oil companies. For every dollar increase in crude oil prices, state-owned oil companies increase the prices of petrol and diesel by up to 40 paise per liter. Petrol diesel becomes costlier by Rs 2 per liter after the increase in crude oil prices by up to $5. If we also add the weakness in the dollar against the rupee, then according to this, the state-owned oil companies will have to increase the prices of petrol and diesel at least by about Rs 14 to 15 per liter to compensate for their losses. Whereas at present the price has increased only by Rs 10 per liter.
How much more the price of petrol will increase can be gauged from the fact that last year when the central government cut the excise duty on petrol and diesel, when the price of crude oil had increased from $ 70 to 83 per barrel and then the price of petrol was increased. The price was getting for Rs 109.69. The price was reduced to Rs 95.41 per liter due to reduction in excise duty and VAT. Now that crude oil is above $100 per barrel, just imagine how expensive petrol can be.
Government took back the relief given on Diwali
In fact, on November 4, the day of Diwali, the Modi government had announced a reduction of Rs 5 in excise duty on petrol and Rs 10 on diesel. Then the central government used to charge Rs 32.90 per liter excise duty on petrol and Rs 31.80 per liter on diesel. But after the decision to reduce the excise duty, the excise duty on petrol was reduced to Rs 27.90 and on diesel to Rs 21.80. But in the last 16 days, the price of petrol and diesel has increased by Rs 10 per liter. In the capital Delhi, petrol is available for Rs 105.41 and diesel for Rs 96.67 per liter. That is, in November 2021, the relief given by the government on Diwali has been withdrawn.
Price did not increase due to electoral compulsion
After the reduction in the price of petrol and diesel on November 4, in view of the assembly elections in the five states, due to the political response by the state-owned oil companies, there was no change in its prices till 22 March 2022 i.e. 138 days. Whereas during this time the price of crude oil had gone from $ 70 per barrel to $140, which is currently trading around $ 100 per barrel. The impact of the Russia-Ukraine war was also seen on the value of the rupee. The rupee saw a fall against the dollar. Against one dollar, it had increased from 74.51 to 77 rupees. One, crude oil was expensive to buy from it, due to expensive dollars, more dollars had to be spent.
Why tax is not decreasing
According to SBI’s research report, if the government reduces excise duty on petrol and diesel, then the government will suffer a loss of tax collection of Rs 8000 crore every month. According to the report, if the government reduced the excise duty and increased the consumption of petrol and diesel by 8 to 10 percent, then the government would have a revenue loss of Rs 95,000 crore to Rs 1 lakh crore in 2022-23. The central government levies excise duty of Rs 27.90 per liter on petrol and Rs 21.80 per liter on diesel. The demand for petrol diesel has increased even after expensive fuel, which is why the government is refraining from reducing the excise duty on petrol diesel. In the capital Delhi, 27 percent of the price of petrol is from the excise duty levied by the central government. Whereas in 2014 it was only 14 percent. Whenever there has been a huge fall in the prices of crude oil, the government has not given relief to the common people, but has filled its treasury by increasing the excise duty.