BHOPAL: Petrol prices in the state capital went past Rs 115.50 per litre with yet another hike – the fifth in the last seven days. The prices went by almost Rs 2 up since October 15. Similarly, diesel is sold in Bhopal at Rs 104.86 on October 22, up by almost Rs 2 again.
The spike in international crude price forcing regular hike in the fuel prices has dampened the festive spirit of aam admi amidst the festival times. Every household has been impacted by the constant hike in fuel prices and are already burdened with its cascading impact on inflation.
About a year ago on November 1, 2020, the rates of the petrol were Rs 88.76 a liter. There has been a hike of over Rs 27 on one liter of petrol in a year. Similarly, diesel was costing Rs 78.29 on November 1 in 2020. There has been an increase of over Rs 26 a liter in the same period.
While the common man on the road is anguished at the repeated fuel price hike, the state government that misses no opportunity to portray itself as ‘peoples’ government’ has consistently refused to rationalize state taxes on petrol and diesel- which is among the highest in India.
According to government sources, the state government collects about Rs 27.75 on every litre of petrol sold in Madhya Pradesh. This includes a cess of Rs 4.50. On the other hand, the state collects about Rs 18.75 per litre on diesel including a Rs 3 cess.
While there has been demands from different quarters that the state lower taxes on fuel, it has refused to budge qand rather opposed any such move at the GST council meets. The fuel station owners meanwhile claimed that the high taxes on petrol and diesel would increase the tax collection revenue of the states like MP.
“Now, the petrol pumps on the bordering districts along the states of UP, Rajasthan and Maharashtra are on the verge of closing down as the sales have declined. The reason being fuel is cheaper across the border in neighboring states. People prefer to get their vehicles refueled from pumps across the border and save some money,” they said.
People will start purchasing fuel from MP once the rates go down, they reasoned.
But, despite this, the state is in no mood to bring down the taxes on fuel and is willing to suffer losses with lower sales volume rather than reducing taxes on fuel.
