Why Petrol And Diesel Are Getting Expensive Every Day

These days the cost of petrol-diesel has become a matter of concern for the common man, because their prices are increasing almost every day. Some of you must be thinking that I do not have any vehicle, so what does it matter to me whether petrol is cheap or expensive! It makes a difference, everything in our life is related to each other! Whether you are a farmer, entrepreneur, or you do a job, everyone needs transportation and for this, petrol and diesel, if the price of petrol and diesel increases or decreases, then it directly affects the common man.

Why Petrol, Diesel Are Becoming Costly Every Day credityatra

Why is the price of petrol and diesel rising in India?

The cost of petrol-diesel is decided with the cost of raw/crude oil, the cost of refining it, and the dealer’s commission, which results the actual price of that oil. But no petrol-diesel reaches us with the actual price, after the VAT is imposed by the government, we get that gasoline as the final price in the market.

Therefore, the VAT imposed by the government on petrol-diesel completely affects the price of it. In our country, the VAT on petrol and diesel is more than other countries, so the price of petrol and diesel in India is high! Unfortunately, the government is increasing the excise tax / VAT on petrol and diesel almost every day, causing the price of gasoline to rise every day.

Why Petrol, Diesel Are Becoming Costly Every Day credityatra 1

Can the price of petrol and diesel be reduced, if it can, then why is the government not reducing it!

If the government reduces the VAT on petrol and diesel, then the price of petrol and diesel can come down! Some time ago, GST has been implemented in place of VAT on every item, but GST is not applicable on petroleum, diesel, natural gas, and turbine fuel! According to the Ministry of Petroleum, if GST is applied after removing VAT, then the price will be no more disturbing to the common man.

Why Petrol, Diesel Are Becoming Costly Every Day credityatra 2

Now you must be thinking that if the price of petrol and diesel can be reduced by reducing VAT or implementing GST, then why is the government not reducing it! Its simple answer is profit, if GST is imposed, then the state will have revenue loss. But the central and state governments are contemplating how this will be implemented!

Also read: Golden Rules For Saving Money In 20s

If the price of petrol and diesel is reduced, then it can also have side effects! Lower petrol and diesel prices will result in more transportation, which will increase traffic and cause a lot of damage to the environment! We all may have different opinions for this, but if the prices are really low, then there can definitely be a slight improvement in the economic condition of the common man!