Greetings, Friends! In Delhi, the cost of Petrol has reached Rs.70 per litre And in cities like Mumbai, the cost has reached up to Rs.80 per litre Such a high price for Petrol has never been seen before in India I would like to tell you all about the realities of this, as well as the double standards and hypocrisy of the government Friends, the price of petrol is mostly dependent on the price of Crude oil in the International markets Which is known as ‘Kaccha Tel’ in Hindi The price for Crude oil varies in the International markets which mainly regulates the price of Petrol and Diesel So, in today’s times, the price of Crude oil is $52 per barrel There is an International standard to measure the rate of Crude oil in Dollars We convert it into Rs. per litre, so as to compare it with our rates of Petrol and Diesel $52 per barrel comes out to about Rs.20 per litre Rs.20 per litre is the basic cost for Crude oil, which is available in the International markets It takes about Rs.10 per litre in the process of refining it. And a commission of Rs.3 per litre is taken by the Dealer So, the cost borne by the government is Rs.33 per litre But we pay Rs.70 per litre for Petrol, when it costs the government about Rs.33 per litre The rest of the money is the tax, Friends The state government charges VAT tax of about Rs.14 per litre while the Centre charges an Excise duty of about Rs.21 So, all in all, we pay a total of Rs.36 in taxes for a litre of Petrol which costs Rs.70 The original cost borne by the government for a litre of Petrol is only Rs.33 This is about 107% that we have to pay In some states, the VAT charged is higher. I have mentioned the figures of Delhi, but in cities like Mumbai, the cost of petrol is Rs.80 per litre So the tax we have to pay is in between 130-140% Can you imagine, you are paying 140% in tax for an object If you think 18% GST is high then imagine a tax of 140% Now, lets come to the reason why the Petrol price has increased to a record high The reason is that around 3 months ago, the price of Crude oil used to be around Rs.47 per barrel Now, it has increased to about Rs.53 per barrel There are several reasons cited for this, the main reason being the hurricanes which have struck the USA So, the price of Crude oil in the international markets increased, which led to the increase in the price of Petrol The Government claims this, and this is true But what the government doesn’t tell you is that 3 years ago, the cost of Crude oil was $109 per litre This price reduced significantly over the past 3 years, with the price being $40 per barrel 3 months ago But we continued to pay the usual price for petrol, as the cost was not lowered then But now when the cost of Crude oil has marginally increased, why are we being made to pay more? I will tell you the reason When the price for Crude oil was coming down, the centre slowly started increasing the Central Excise duty You can see this clearly in the graph, between 2014 to 2017, the Central Excise duty slowly increased from Rs.9 to Rs.21 This was the same period when the price of Crude oil reduced from $109 per barrel to $40 per barrel The Profit from this was not given to us, it was entirely taken by the government But when the price for Crude oil marginally increased 3 months back, the government refused to reduce the tax and shrugged off responsibility by blaming it on the increased price of Crude oil and subsequently expecting us to pay more A simple question which needs to be asked by the Public to the government When the price of Crude oil was decreasing, then why wasn’t the benefit passed on to the consumers? And now when the price of Crude oil has marginally increased, you so easily told us to pay more Now some people would like to defend the government in this matter They say that the government needs the money from the taxes That there is a shortage of Money from taxes, which they would use for our benifit like building roads etc Okay, let us agree that the government needs money and thats why they have kept such high taxes But, this exposes a very huge hypocrisy of the government The Double standards of the governments are reavealed 31st May 2012, do you remember this date friends? If not, the let me remind you On this day, the BJP had declared a ‘Bharat bandh’ in the entire country This was done as the Petrol prices had increased during that time It was the same then as now, Rs.80 per litre And these people had come out on the streets to protest this Even their Chief Ministers had started protesting Not only BJP, but even the Left and parties like SP had started protesting against the Petrol hike Didn’t these people know then how the price of Petrol is dependent upon the price of Crude Oil Friends, the price of Crude oil during 2012-2013 was $109 per barrel Almost double to that of now Forget taxing, the government then had to spend money from its own pocket They had to provide subsidies to keep the petrol rates down. Subsequently, after all of this, the Petrol price was Rs.80 In 2012, if the government had put taxes equivalent to that of now, the same amount of Central Excise duty, the petrol price would have reached about Rs.160/ L This is a very shameful thing for those leaders who, in those days, participated in the ‘Bharat band’ and protested against this Now, when these very people, who are in the government presently, understand the dependance on prices of Crude oil and the importance of tax collection Read this tweet from Narendra Modi in 2012 – The price of petrol is the same today as the day when you wrote this tweet Mr.Modi On top of that, the price of Crude oil has almost halved compared to then I think all of you, the whole of BJP should admit your mistake of protesting during that time and failing to understand the Economics behind all of this You may blame congress for a lot of things like Scams, Dynasty politics etc but blaming them for Petrol price rise is incorrect There are two simple solutions available here now Either the government admits that it needs the taxes which have been collected from this Which isn’t wrong as the government needs taxes for enabling the development of the country So, it wouldn’t be wrong for the government to admit that it needs the taxes Or they could reduce the petrol price by reducing the Central tax, which they have been subsequently increasing for the past 3 years An Idea regarding this is bringing the Petrol and Diesel tax under the ambit of the GST If there is an 18% tax as per GST on petrol, the cost for the consumers would be Rs.40 per litre I hope you liked this video and learned a lot from it Share this video with your friends, and if you want to see more such videos, you can click here and subscribe to my channel If you want to support my initiative of making such videos, you can click here and contribute via ‘Patreon’ where, we together, can achieve something huge Until next time, Thank you!