In Andhra Pradesh's Visakhapatnam, CPI (M) members protested against the rising fuel prices.
A cut in taxes on petrol and diesel is ruled out for now as neither the central government nor some states have the appetite to stomach revenue loss from such a move, a top government official said Monday.
The current situation is not entirely gloomy as it presents an opportunity for reform.
With the title "Truth of hike in petroleum prices", the ruling party with the help of bar diagrams explained that the percentage increase in the rise of fuels in 2018 is less than the increase during the previous two terms. "Bringing oil in GST is not a solution. Why is the common man being made to pay the price for the miscalculations on part of the Central government?" asked the MNS president. The Modi government must grab this opportunity, not let it go a-begging. The central government had raised excise duty on petrol by Rs 11.77 a litre and that on diesel by 13.47 a litre in nine installments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then it cut the tax just once in October a year ago by Rs 2 a litre.
"A cut in oil taxes will add to the fiscal deficit". The reduction was carried out on May 31 in such a manner that the prices of both petrol and diesel will drop by a rupee.
Fuel prices in Delhi are the cheapest among all metros and most state capitals due to lower taxes. Since May 2014, the excise duty on petrol has seen a skyrocketing increase of 211%, while the duty on diesel has seen an increase of 443%. "Now that the rupee has crossed 72 to a USA dollar, what would they say now", he asked and added that the economic progress and GDP growth rate has been squandered by the Modi government. However, on June 16, 2017, a new scheme was implemented under which prices were to be revised every morning This shift from administrative price mechanism (APM) to dynamic pricing was done to ensure that the benefit of the smallest change in worldwide oil prices can be put into effect by dealers.