Why Crude Price is so low ?
Recently due to Covid-19 low demand and over supply in crude oil made drastic fall in Brent crude oil. On 1st January, 2020 Brent crude oil price was 66$ per barrel which has fallen down to 27$ in march.
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The Research
High Price of Petrol & Diesel
Research showed that In India as on 16.3.2020 :-
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Petrol Base price was - 27.96 Rs/lt
Adding freight charges - 00.32 Rs/lt
Price charged to dealer - 28.28 Rs/lt
Add : Excise Duty - 22.98 Rs/lt
Add : Dealer's Comm - 03.54 Rs/lt
VAT - 14.79 Rs/lt.
Making the price alomost 69.59 Rs/lt.
Making the price alomost 69.59 Rs/lt.
On 14th March 2020, Govt raised it's excise duty in petrol by 3 rs per liter. (2 Rs Special additional excise duty and 1 Rs for Road and Infrastructure.
Why the government does this ?
The reason is for raising more fund to fill government treasury and hence working towards growth and development of the county
On 14th March, government raised it's excise duty by Rs.3. (Rs.2 as special additional excise duty and rs.1 for road and infrastructure but why government had to raise such duty when citizens were facing so many problems due to the covid-19 breakout.
The answer ks very simple to increase more income for governments. Example :- Rs.3 in excise duty can generate 40,000 Cr yearly revenue to govt.
Recently in finance bill 2020 Special additional excise duty is 18 rs and 12 rs in petrol and diesel respectively about to go 150% taxes.
Rajasthan govt raised their VAT by 4% from 30 to 34 now in petrol and from 22% to 26% VAT in diesel.
Pros it makes govt earnings more and so a better stronger economy and infrastructure in future.
Cons the people do not get any relaxation in their travelling expenses by such fall in crude prices ever.
Hence we cannot do anything for that and just hope govt to utilize such additional revenue for our and nations benefit.
The answer ks very simple to increase more income for governments. Example :- Rs.3 in excise duty can generate 40,000 Cr yearly revenue to govt.
Recently in finance bill 2020 Special additional excise duty is 18 rs and 12 rs in petrol and diesel respectively about to go 150% taxes.
Rajasthan govt raised their VAT by 4% from 30 to 34 now in petrol and from 22% to 26% VAT in diesel.
Pros it makes govt earnings more and so a better stronger economy and infrastructure in future.
Cons the people do not get any relaxation in their travelling expenses by such fall in crude prices ever.
Hence we cannot do anything for that and just hope govt to utilize such additional revenue for our and nations benefit.
Editor - Prasant shukla
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☆ Comment your views such raise in prices is good or bad.
☆ Comment your views such raise in prices is good or bad.
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2 Comments
Raise in price is good for the Government.
ReplyDeleteYes it is good for national econkmy too. But not for public
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