The Government seems to be generous in reducing the prices of petrol and diesel but clever in increasing the taxes on them simultaneously. Before the public knew that the price of petrol was reduced by 50 paisa and diesel by 60 paisa the government increased the taxes. Hence the actual reduction of the price of petrol was only 30 paisa. Though the price of diesel was reduced by 60 paisa, the tax on it was increased by Rs.1 and 17 paise. This way the price of diesel was increased by 59 paise.
Excise Duty Doubles
The Prime Minister Modi government increased excise duty 9 times in 13 months. The duty was increased on petrol by Rs.9.65 paisa and on diesel by Rs.11.83paisa.
Due to the increase of excise duty the Government will get an income of Rs. 2,500 crores in three and half months. Though the oil companies now run on profit lines and oil prices fall in international market, its result was not seen in our country.