One factor, the high level of taxes on the retail price, is a fiscal choice. If petroleum prices are brought within GST, it will help in two ways.
Nonetheless, given the transportation cost, the fuel prices in Kerala are higher than even states where there is a higher sales tax. "If taxes are cut, prices will decline significantly".
Giving an example, the official said if petrol is at Rs 83, then Rs 20 goes to states as taxes plus Rs 10 from Centre's devolution.
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The officer said police personnel have been deployed at petrol pumps across Delhi to ensure no untoward incident takes place. Because the price is built up by excessive taxes on petrol and diesel.
State president of Janata Dal (Secular) AH Vishwanath accused the Modi government of being "crony capitalist", working for the corporates instead of the poor. This led to its excise collections from petro goods more than doubling in the last four years - from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18. These taxes are a huge revenue generator for the government, and the current regime is using these as milch cows to garner greater revenue while the common people suffer.
AIMTC's Gupta adds, "If they wish they can make our lives easier, now the small farmers are failing to cope with the price revisions every day, we are heavily reliant on this fuel, the changing prices not being put under a uniform ambit are hurting us the most, there has to be a rollback urgently". The revised rates are applicable from 6 am from today. Now, three months after, the prices are Rs 84.06, and Rs 77.98. The new rates will come into effect from Tuesday. Both petrol and diesel prices have been at their all-time high in the country for around a week now, due to increase in crude oil prices and depreciation in the rupee against the dollar.
Mr. Maken said the difference between fuel price hikes during the (UPA) regime and the Modi government is that while global crude prices dictated their upward revision, the Modi government used low worldwide crude prices to make windfall gains.