March 17, 2020
Saugata Roy slams Centre for hiking excise duty on fuel
FULL TRANSCRIPT
Sir, I rise to speak on the matter of petroleum prices. While the world economy is taking a hit due to coronavirus, the Indian economy is suffering even more due to the miscalculated steps taken by the present central government. This is most evident in how the government has failed to pass on the benefits of plunging oil prices to consumers.
Oil prices have declined due to fights between Saudi Arabia and Russia, and it has seen the sharpest drop since the Gulf war of 1991. For a monthly average of nearly $66 per barrel in December, 2019, the price of crude oil was down at $34.70 as of March 11, 2020.
Now given that we get 85 per cent of our crude import, the drop in oil prices should have brought good news to the common people. But the Modi Government has subsequently raised excise duty to collect more taxes. Though the government has given miniscule price cuts of 12 paise per litre on petrol and 14 paise a litre on diesel.
The Central Code of Indian Taxation and Customs raised special excise duties on petrol price by Rs 2 and additional road cess was raised by Re 1 per litre each on petrol and diesel. This has taken the total excise duty on petrol to Rs 22.98 per litre and on diesel to Rs 20.83 per litre.
Sir the move is said to fetch the Government Rs 39,000 crore.
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