Day Light Robbery

It is worthy to have a look at the components of the petrol and disel prices (price per litre at Kochi as on 29-1-2021).

                                          Petrol        Diesel

                                            (Rs.)          (Rs.)

Basic Price                       29.79        30.95

Central Excise Duty        32.98        31.83

Other Expenses                 0.20          0.20

State Sales Tax               18.94        14.34

Addl. Sales Tax                  1.00          1.00

Cess                                     0.20          0.15

Dealer Commission          3.35          2.20

Total                                    86.46       80.67

In the case of petrol, out of the total price of Rs.86.46, only Rs.29.79 is the basic price. 38.1% of the total price goes to central government as CED while 21.9% goes to the State as ST.

In the case of diesel, out of the total price of Rs.80.67, only Rs.30.95 is the basic price. 39.5% of the total price goes to central government as CED while 17.8% goes to the State as ST.

As long as the central government and the State government are reluctant to reduce the tax component, the prices would reach astronomical  levels very shortly. And the central government is not willing to consider the Indian industry's long pending demand for bringing petrol and diesel prices within the ambit of GST.

What is happening on the fuel price front is nothing short of day light robbery.