Fuel prices hiked, revenue rises, people suffer
Source: The Sangai Express
Imphal, June 10 2018:
Even though people have been suffering due to fuel price escalation, both the Central and State Governments have been collecting increased revenue.
Corresponding to the hike in prices of petrol and diesel, State tax levied on the two commodities too rose.
According to an independent study conducted by The Sangai Express on fuel price hike, petrol costs Rs 74.86 per litre and diesel is priced at Rs 66.17 per litre at Imphal.
The prices of petrol and diesel reached Rs 75.09 and Rs 66.34 per litre respectively at Imphal on June 6.In February 2013, the prices of petrol and diesel at Imphal were respectively Rs 66.18 and Rs 47.5 per litre.
These prices shot to Rs 76.1 and Rs 52.54 respectively in September same year due to escalation in the prices of crude oil in international markets.
The prices of petrol and diesel reached Rs 75.09 and Rs 66.34 per litre respectively at Imphal on June 6, not because of fluctuation in international fuel price but due to sudden and steep increase in the Central excise tax levied on fuel.
Correspondingly, the tax levied by the State Government on fuel was also raised dramatically.
When petrol was priced at Rs 66.18 per litre in February 2013, the State Government's tax was Rs 12 per litre while the Central tax was Rs 9.48 per litre.
The corresponding figures for diesel were Rs 5.78 and Rs 3.56 .
The rate of State and Central taxes remained unchanged when petrol and diesel were priced at Rs 76.1 and 52.54 per litre in September 2013 .
When petrol was priced at Rs 75.09 on June 6 this year, the State and Central taxes were Rs 14.59 and 19.48 per litre.
State and Central taxes levied on diesel on the same day were Rs 8.23 and Rs 15.33 per litre.
It is the sharp increase in State and Central taxes which led to steep hike in the prices of petrol and diesel.
When an individual buys one litre of petrol at Imphal, he/she pays Rs 14.59 as State tax and another Rs 19.48 as Central tax.
The corresponding figures in February 2013 were Rs 11.03 and Rs 9.48 .
Likewise, State and Central taxes paid by an individual when he/she buys one litre of diesel are Rs 8.23 and Rs 15.33 respectively which were Rs 6 and Rs 3.56 in February 2013 .
On account of the sharp hike in the State and Central tax rates levied on petrol and diesel, revenue collection by both the State and Central Governments has increased dramatically.
On an average, IOCL sold 1,20,000 litres of petrol and 2,20,000 litres of diesel in Manipur in 2013.Central tax collected in a day were Rs 11,37,600 for petrol and Rs 8,03,00 for diesel.
During the same time, the State Government collected daily tax of Rs 13,23,600 from petrol and Rs 12,71,600 from diesel.
As per the IOCL's current market share of fuel in the State, IOCL has been selling 2,30,000 litres of petrol and 4,05,000 litres of diesel in a day on the average.
As such, the State Government collects daily tax Rs 33,55,700 from petrol.
Corresponding Central tax being collected in a day is Rs 44,80,400 for petrol and Rs 62,08,600 for diesel.
As per the independent analysis, IOCL's petrol, diesel, SK Oil and LPG are the only commodities against which both the State and Central Governments can collect full taxes in Manipur without leaving any room for leakage or lapses.
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