Petrol, Diesel prices remain steady, govt tax collection on fuel swells by 459% in 7 years

Representative image: Reuters

Retail fuel prices across the country remained steady on March 9, 2021, after prices of petrol and diesel touched new highs on February 27, 2021.

The prices of petrol and diesel in New Delhi remained unchanged at Rs 91.17 per litre and Rs 81.47 per litre, respectively, according to the Indian Oil Corporation Limited (IOCL). The prices were last hiked by 24 paise per litre for petrol and 15 paise per litre for diesel on February 27, 2021, in the national capital.

In Mumbai, the price of petrol is Rs 97.57 per litre. The price of diesel stood at Rs 88.60 per litre.

The increase in the previous weeks has taken petrol to cross historic-high levels of Rs 100 a litre in several cities across the country raising concerns over high tax rates by the government. Fuel prices have rallied since January 2021 after a hike in global fuel prices.

Union Oil Minister Dharmendra Pradhan revealed in the parliament on March 8, 2021, that the price of domestic cooking gas, LPG has doubled to Rs 819 per cylinder in the last seven years while the increase in taxes on petrol and diesel has swelled collections by over 459 per cent.

"Prices of petrol and diesel have been made market determined by the government with effect from June 26, 2010 and October 19, 2014 respectively," Pradhan said.

"Since then, the public sector oil marketing companies (OMCs) take appropriate decision on pricing of petrol and diesel in line with their international product prices, exchange rate, tax structure, inland freight and other cost elements."

Pradhan further revealed the tax collection from petrol and diesel accounted was Rs 52,537 crore in 2013, which rose to Rs 2.13 lakh crore in 2019-20 and swelled further to Rs 2.94 lakh crore in the first 11 months of the current fiscal year.

[Input from agencies]