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Diesel Prices

8/28/2018

In the last eight months the prices of diesel have gone up by 10 rupees per liter. So is the case in petrol prices. With diesel rise the transportation cost of goods, have also gone of every commodity resulting in more inflation. On August 26 the diesel prices gone up by 14-15 paise per liter and it selling between 69 to 73-74 rupee per liter. All the previous to uptil now Governments of all the parties and Prime Ministers enhanced the prices of petro fuel. All the time the plea was hike in petro crude prices in the International oil market. For many decades it were under the Government Price Control and on subsidy. At a point it was decided to close the price control and bring it under the market system on the principle of prices will go up and down according to petro crude prices. At that time it was a considered opinion that prices will never come down. But few years back the petro crude prices crashed form 64 dollar per barrel to 40 dollar per barrel and according to market principle the prices of petrol and diesel also came down. It resulted in reduction in Central Excise Tax and VAT of states. Both the Central and State Governments immediately raised their tax rates of maintain their tax revenue at the estimated level. It was a clear violation of market principle and commitment to people of India. Further it is an immoral act on the part of Government not to reduce the taxes when the prices go up rather it reap the benefits of price rise in more tax revenue. With such an attitude and policies the Governments itself have nullified the market system in petroleum products. Now it should be officially scrapped to revert back to price control system. In a welfare state the Government should not play tricks with the people. Furthermore the Modi Government was very keen to have GST system in the nation with laud promise to create one market for the whole nation with one price of all the commodities all over the country. But from the very beginning the Government backed out from its laud aim by keeping the petrol and diesel outside the purview of GST. It is clear cut negation of the promise of creating one market for the whole nation on one price of all the commodities. With different VAT rates the goods transportation changes can never the same and prices and inflation will go on mounting. The RBI takes the plea of price rise and inflation to keep the bank lending rates high. The Union Civil Aviation Minister Mr.Suresh Prabhu publicly demanded the domestic airlines are in competition with foreign airways. To protect domestic airlines the ATF (Aviation Turbine Fuel) be brought under the GST. It is not a question on ATF alone but petrol and diesel should also be under GST. Otherwise the Market Principle in petro crude and GST should be scrapped.

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