Petroleum Prices: Six non-BJP ruled states did not reduce VAT, Puri said – that's why fuel is expensive there

Posted on 15th Dec 2022 by rohit kumar

The governments of six non-BJP ruled states of the country have not reduced the Value Added Tax (VAT) on petroleum products. Due to this, petrol and diesel are expensive in these states. These six states are West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, Kerala and Jharkhand.

 

Union Petroleum Minister Hardeep Singh Puri said this in the Lok Sabha today amid protests by the opposition regarding the costlier petroleum products. Puri said that the central government reduced excise duty on petroleum products. After that some other states reduced VAT on their part, but six states did not reduce VAT.

 

Still the prices are low in the country

Even after the expensive petrol in the country, Minister Puri said that India is one of those countries where its prices are still the lowest. He informed that the country's oil marketing companies have incurred a loss of Rs 27,276 crore due to high crude oil prices in the world market.

 

Opposition MPs put pressure on state governments

Puri asked the opposition MPs to put pressure on their state governments to reduce VAT. The country imports more than 85 per cent of its crude oil requirement. Therefore, the prices of petrol and diesel in the country are linked to their prices in the international market. He said the retail prices of petrol and diesel depend on the crude purchase price, exchange rate, shipping charges, inland freight, refinery margin, dealer commission, central taxes, state VAT and other costs.

 

Crude oil costlier by 102 percent, yet prices increased by 18 to 26 percent in India

The Petroleum Minister said that between November 2020 and November 2022, the average price of crude oil has increased by 102 percent (from $ 43.34 to $ 87.55). But, the cost price of petrol and diesel in India has increased by only 18.95 per cent and 26.5 per cent respectively.

 

Prices not increased since April 6

Puri said that despite the record prices of crude oil in the world market, the government oil marketing companies have not increased the prices of petrol and diesel since April 6. Due to this, three companies IOCL, BPCL and HPCL have suffered a loss of Rs 27,276 crore in the first half of the current financial year 2022-23 as compared to a profit before tax of Rs 28,360 crore in the first half of the financial year 2021-22.

The central government reduced excise duty twice on 21 November 2021 and 22 May 2022. This resulted in a reduction of Rs 13 and Rs 16 per liter in the price. Some states and union territories also reduced VAT rates on petrol and diesel after the Centre's tax cut.

 

the opposition walked out

Dissatisfied with Petroleum Minister Puri's reply, members of opposition parties Congress, DMK, TMC and NCP walked out of the House.

 

Also Read: Price Hike: Prices of essential commodities increased by 14% in a year, rise in prices of other goods including milk, oil, salt

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