ads

Petroleum Sector: Golden Goose of The Centre

by GoNews Desk 1 year ago Views 6640

The government is treating the petroleum sector as its Golden Goose since the last 5 years, increasing excise duty and cess on petrol and diesel

Fuelk Price Hike

A PHP Error was encountered

Severity: Notice

Message: Trying to get property 'id' of non-object

Filename: views/articles-details.php

Line Number: 74

Backtrace:

File: /home/gonewsindia.com/public_html/apps/views/articles-details.php
Line: 74
Function: _error_handler

File: /home/gonewsindia.com/public_html/apps/views/default.php
Line: 679
Function: view

File: /home/gonewsindia.com/public_html/apps/controllers/Home.php
Line: 221
Function: view

File: /home/gonewsindia.com/public_html/index.php
Line: 293
Function: require_once

A PHP Error was encountered

Severity: Notice

Message: Trying to get property 'id' of non-object

Filename: views/articles-details.php

Line Number: 76

Backtrace:

File: /home/gonewsindia.com/public_html/apps/views/articles-details.php
Line: 76
Function: _error_handler

File: /home/gonewsindia.com/public_html/apps/views/default.php
Line: 679
Function: view

File: /home/gonewsindia.com/public_html/apps/controllers/Home.php
Line: 221
Function: view

File: /home/gonewsindia.com/public_html/index.php
Line: 293
Function: require_once

A PHP Error was encountered

Severity: Notice

Message: Trying to get property 'category' of non-object

Filename: views/articles-details.php

Line Number: 77

Backtrace:

File: /home/gonewsindia.com/public_html/apps/views/articles-details.php
Line: 77
Function: _error_handler

File: /home/gonewsindia.com/public_html/apps/views/default.php
Line: 679
Function: view

File: /home/gonewsindia.com/public_html/apps/controllers/Home.php
Line: 221
Function: view

File: /home/gonewsindia.com/public_html/index.php
Line: 293
Function: require_once

The government is treating the petroleum sector as its Golden Goose since the last 5 years. Increasing excise duty and cess by two rupees a litre on petrol and diesel in the latest Union Budget, is a perfect example. It is not only the centre, but also governments in the states  are imposing more taxes on petroleum products. The central and state governments’ income from the petroleum sector has risen to almost double since 2014.

According to the Petroleum Planning and Analysis Cell’s report or PPAC, the centre and states' combined revenue from the petroleum sector in 2014 was Rs 3.32 lakh crore which rose to almost double to Rs 5.95 lakh crore, in FY19. The centre has a major share in this earning which stands at Rs 3.65 lakh crore. This contributes to more than 23% of the centre’s total tax income.

Also Read:

A PHP Error was encountered

Severity: Notice

Message: Trying to get property 'slug' of non-object

Filename: views/articles-details.php

Line Number: 87

Backtrace:

File: /home/gonewsindia.com/public_html/apps/views/articles-details.php
Line: 87
Function: _error_handler

File: /home/gonewsindia.com/public_html/apps/views/default.php
Line: 679
Function: view

File: /home/gonewsindia.com/public_html/apps/controllers/Home.php
Line: 221
Function: view

File: /home/gonewsindia.com/public_html/index.php
Line: 293
Function: require_once

A PHP Error was encountered

Severity: Notice

Message: Trying to get property 'id' of non-object

Filename: views/articles-details.php

Line Number: 87

Backtrace:

File: /home/gonewsindia.com/public_html/apps/views/articles-details.php
Line: 87
Function: _error_handler

File: /home/gonewsindia.com/public_html/apps/views/default.php
Line: 679
Function: view

File: /home/gonewsindia.com/public_html/apps/controllers/Home.php
Line: 221
Function: view

File: /home/gonewsindia.com/public_html/index.php
Line: 293
Function: require_once

https://www.gonewsindia.com/latest-news//-">

A PHP Error was encountered

Severity: Notice

Message: Trying to get property 'lang_id' of non-object

Filename: views/articles-details.php

Line Number: 87

Backtrace:

File: /home/gonewsindia.com/public_html/apps/views/articles-details.php
Line: 87
Function: _error_handler

File: /home/gonewsindia.com/public_html/apps/views/default.php
Line: 679
Function: view

File: /home/gonewsindia.com/public_html/apps/controllers/Home.php
Line: 221
Function: view

File: /home/gonewsindia.com/public_html/index.php
Line: 293
Function: require_once


This share was merely 10.2% in the last year of UPA’s tenure. In FY-2014, the centre earned Rs 1.04 lakh crore from the petroleum sector while its total earnings were Rs 10.15 lakh crore. Another gearing aspect is that the backbone of petroleum sector -- crude oil -- dropped by almost 15% during the period 2014 to 2019 but instead of passing on the relief to the common man, the centre has continuously filled its coffers.

The story does not end here. State governments levy an average of 30% VAT and other charges on the price of petrol. It is not as simple as it appears. There is more to it. Taxes from the state government do not apply on the base price of petrol (which is Rs 34.19p per litre).

State taxes apply on the sum total of the base price, the centre’s taxes and the dealer’s commission. If the states levy their taxes on the base price of petrol, the consumers will be charged Rs.6 to Rs 8 less per litre in respective states. For example, in Delhi, petrol consumers will be able to buy petrol at a rate cheaper by Rs 6 per litre than what they are paying now. With diesel it’s the same story. 

Last but not least, oil marketing companies or OMCs buy crude oil on a monthly contract but consumers are charged prices which fluctuate on a daily basis. This trick of OMCs is serving them well and increasing their fortunes, day by day. In 2014-15, profit after tax of all three OMCs (IOCL, BPCL &HPCL) was Rs 13,091 crore which swelled to Rs 30,055 crore by the end of FY19. 

Latest Videos

TAGS

Latest Videos

Facebook Feed