These days, there is a hazard about the prices of petrol in India. Crude oil prices in the international market are not on the boom, but despite this, petrol in India is becoming expensive, due to the rising prices of petrol for some time, the Modi government has to face severe criticism.

Petroleum Minister Dharmendra Pradhan had also tried to clarfication the prices of petrol in the Modi government, but the attack of opposition parties and the disappointment of the public did not stop there.

Opposition parties in India have alleged that the prices of crude oil are under control worldwide, in which Modi Government is keeping petrol expensive by imposing tax.

On September 15, the price of crude oil belonging to Indian baskets in the international market was $ 54.58 a barrel.

Now the question arises that if crude oil is on the normal level then why is petrol being so expensive? The answer to this question is not complicated but rather easy.

You will be surprised to know that when petrol reaches India it is not so expensive.

If you talk about Tuesday, September 19, 2017, on the basis of Daily Pricing Meteorology, the trade parity of the petrol land cost was just Rs 27.74.

This cost is from the price at which the product is imported and includes international transport costs and tariffs.

If you add marketing costs, margins, fronts and other fees to this price, then the price of petrol will come on which the dealers get it.

On September 19, all this together was 2.74 rupees. That is, if the two were mixed, the dealers could get the petrol at a rate of Rs. 30.48 per litre.

You may wonder, if the petrol is available at such a cheap rate to the dealer, then how much is costly when reaching the common man?

But the real game begins after this. How does the petrol price of Rs 30.48 come to Rs 70 when it comes to the customer, behind this is a game of taxation of the Modi Government.

In fact, the rate at which the dealers get and the cost of the price sold to the customer makes excise duty and VAT.

Petrol was sold at Rs 70.52 per litre on 19th November in Delhi.

In 30.48, you add excise duty of Rs 21.48 per litre. Then add it to the dealer commission of Rs 3.57 per litre and finally VAT at Rs 14.99 per litre, which is 27 per cent in Delhi.

With this math, the Modi government is earning a lot of money, but despite the fact that the crude oil is at reasonable rates in the international market, petrol is getting very expensive for the common people.

Some similar story is with Diesel. Diesel's trade parity land cost is Rs 27.98 per litre, after which the charges of 2.35 rupees are added the dealers get a price of Rs 30.33. But the customers are getting diesel at Rs 58.85 per litre.

That is because in this excise duty of Rs 17.33 per litre, dealer commission of 2.50 rupees, VAT at the rate of 16.75 per cent and Rs 0.25 per litre of pollution cess is added, which adds 8.69 rupees. Overall, the price goes up to Rs 58.85.

These days gasoline companies decide the rates and the Modi government claims that they do not interfere in this matter.

In such a situation, if the public has to expect relief, it can only be found on changes in the tax front which is only in the hands of the government.

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