Fuel bills skyrocketpost daily price regime


Petrol/diesel price has gone up by ₹10 a litre since June last

The prices of diesel and petrol have reached record levels pushing up the price of daily necessities varying from pulses and cereals to items of clothing. The “steep” rise in the price of automotive fuels is a “frightening” phenomenon and it is not known at whose interest the prices are hiked, said a petroleum dealer here on Tuesday.

The prices of the fuels have gone up steadily since the government allowed daily change in prices in the middle of June last year. The price of the fuels has gone up by about ₹10 a litre since then. The price of petrol was ₹72.63 a litre on January 1 and diesel ₹63.86. But since then the prices have gone up and stood at ₹73.88 and ₹66.03 respectively on Tuesday, said E.N.L. Menon, a fuel dealer here.

Not under GST

The bulk of the price of the fuels is accounted for by the Central and State sales taxes. Kerala Government Sale Tax and Central Government Sales Tax are imposed as automotive fuel is not included in the recently-introduced Goods and Services Tax (GST).

The State government sales tax is 34.53% on a litre of petrol while on diesel, it is 24.53%; similarly, the Central government charges 17.54% on every litre of petrol and diesel.

The Central government had reduced ₹2 per litre in tax on October 3 last year.

The price variation has the effect of slow poisoning, says M. Radhakrishnan, All Kerala Federation of Petroleum Traders. The petroleum dealers had objected to the method of hiking the price of automotive fuels, he added.

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Printable version | Jan 28, 2020 10:18:18 PM | https://www.thehindu.com/news/cities/Kochi/fuel-bills-skyrocketpost-daily-price-regime/article22451972.ece

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