Petrol and diesel prices have been relentlessly rising over the past few months. Petrol currently sells at over Rs100 per litre in a few states like Rajasthan and Madhya Pradesh. Petrol price had shot to Rs100 per litre in Malkangiri. The Opposition and people in general have been clamouring for a cut in the fuel prices as they fear such mindless rise in fuel rates will automatically push up the prices of common essentials and then will make life painful for the common man. As it is, people are reeling from joblessness and many more ills caused by the economic recession and then the COVID-19 pandemic. Such rise in fuel prices, even when the economy is still stuttering, has shocked one and all. Amid all this clamour and protests centering on the rise in fuel prices, the government has done precious little. Last week Union Petroleum Minister Dharmendra Pradhan said the rates will come down once winter goes. This was cold comfort. The Centre and the state governments have brazened out the protests against fuel rates all these months. Meanwhile, the government is reportedly planning to cut down the excise tax on fuel. The cut could be as high as Rs 8.50 per litre of petrol. Not only petrol, and diesel, has LPG rate also gone out of control. The gas price has firmed up by over Rs 100 over last one month alone – a never seen before phenomenon. Excise duty was raised between Rs13 and Rs16 per litre on petrol and diesel between March 2020 and May 2021 which now stands at Rs 31.8 on diesel. But, the government did not restore the taxes to their original levels when oil prices recovered. Central and state taxes make up for 60% of the retail price of petrol and over 54 per cent of diesel. The Modi government raised Excise duty on petrol and diesel on nine occasions between November 2014 and January 2016. Therefore, there is no reason why it cannot roll back the tax when the price of fuel has reached a three-digit mark. Making the rollback decision contingent on electoral interests is unfair.
It is a no brainer why the government is reportedly exploring the option of slashing the excise rate now when it was sitting quite all this while. Five states and a Union Territory, including the all important West Bengal are going to polls beginning March. There has been no rise in fuel rates for five days now. Ever since the Election Commission (EC) announced the dates for the Assembly polls, there has been a halt in the upward movement of fuel rates. Last year, there was a similar pause on the runaway rise in fuel prices ahead of the Assembly elections in a few states, including in Bihar. However, as soon as the elections were over, oil companies increased retail prices. Similarly, this time around the Centre is exploring the options of cutting down the excise rate on fuel. If the cut really happens, it would mean the government had enough room to scissor the excise rate without impacting its target for revenue from the tax on the fuels. If it is so who prevented it from doing so all these months. The NDA government certainly waited for the EC to announce the dates before it goes about easing or hitting the pause button on fuel price rise.