High petrol and diesel prices are once again in the news. And the reason for this is the high taxes on these fuels, rather than the international crude oil prices, why govt taxes are extortionist in nature?

The Times of India has written a hard-hitting editorial on Friday (15 September) on why the government should lower the oil taxes. “International crude oil prices may have halved since the Narendra Modi government assumed office, but it has made practically no difference to the consumer. he was said anomalous situation encapsulates a misguided taxation policy that has treated the oil sector as government’s cash cow,”.

The capital of a BJP-Shiv Sena governed state, the petrol price was the highest in the country – on Tuesday (12 September), it had inched up to Rs 79.48 per litre. 

Narendra Modi spikes to avoid sudden prices that coused popular revulsion, Example are 1 July and 12 September, the price of petrol for the common man went up by Rs 5.18 per litre. Similar has been the hike in the diesel prices in Maharashtra. It now costs Rs 62.37 per litre in Mumbai

The residents of Delhi are a shade luckier, for they have to fork out a little less for both petrol and diesel: Rs 70.38 per litre for petrol and Rs 58.72 per litre to sale on 12 September. This difference is there because though the excise duty levied by the central government is the same in case of both Maharashtra and Delhi, the value added tax (VAT) charged by the Delhi government is comparatively less than that by the Maharashtra government. Nevertheless the prices of petroleum products in Delhi have correspondingly gone up considerably in the last year due to the massive increase in the central excise duty in this period.

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