Oil companies ‘pickpocket’ common people again, fuel prices hiked for first time this week

KOCHI: Enhancing the plight of commoners in the country who are reeling under the financial downturn inflicted by covid 19 pandemic, the petrol and diesel prices hiked again. When petrol prices increase by 25 paise, diesel prices increased by 26 paise. The hike in fuel prices by petroleum companies comes at a time when the fuel prices are low in the international market. The fuel price in Kochi on Monday is Rs 85.11 for petrol and Rs 79.24 for diesel.

Fuel price is determined on the basis of import duty on petrol & diesel and international crude oil price. The fuel price witnessed a major increase last week also. The constant increase in fuel prices will also hike the price of basic and necessary commodities. Therefore, a popular demand raised seeking the intervention of the centre but nothing happened. As all tax revenue routes of the centre were disrupted following the pandemic’s impact, the sole income source was the excise tax from fuel. Even though the consumption of fuel decreased during the covid 19 period, the centre was able to ensure a steady income, through the purchase of fuel by oil companies. When other means of revenue witnessed a severe drop, the revenue from oil taxes increased by 48 per cent and this was done by the steep hike in excise tax of petrol and diesel.

The central exchequer received Rs 1.96 lakh crore in the form of excise tax in the period between April to November in the ongoing financial year. Last year it was just Rs 1.92 lakh during the same period in the previous financial year. Even after lower consumption compared to last year, the tax revenue of the government increased due to the hike in excise tax of petrol and diesel.