For the last few days in India, the Narendra Modi government is surrounded by criticisms of petrol and diesel prices. The current policy of daily review of petrol-diesel prices are also in the midst of criticisms.

In India, Union Petroleum Minister Dharmendra Pradhan in reply to a question asked by the media on Wednesday (September 13th) said that the policy of daily review will continue.

In the past one month, the price of petrol has increased by more than seven rupees. The Modi government has implemented the daily review policy of petrol prices from June 16. Before that, fortnightly prices of petrol prices were peaked. Let's understand why there is a dispute about petrol prices?

On Thursday (September 14th), petrol in Delhi costs Rs 70.39 per litre, Kolkata Rs 73.13 per litre, Mumbai Rs 79.5, and Chennai 72.97 litres.

This price of petrol is the highest since August 2014.

Petrol in India is also expensive when the cost of crude oil in the international market has decreased considerably in the last few years. But Indian customers are not getting the benefit of reducing the cost of crude oil in the international market.

The Narendra Modi government says that India needs money for infrastructure development, so he is taking advantage of the reduction of crude oil prices in the international market. The Modi government has imposed an additional tax on oil, due to which the price is not being reduced in India despite the price decreasing in the international market.

When the price of petrol was more than Rs 70 per litre in August 2014, the crude oil price in the international market was $ 103.86 (about Rs. 6300) per barrel. On Thursday, the price of crude oil in the international market is $ 54.16 (Rs. 3470) per barrel. That is, nearly halfway in comparison to three years ago.

According to the Catch News report, Indian Oil Companies (Indian Oil, Hindustan Petroleum, Bharat Petroleum) had a litre crude oil (till September last year) of Rs 21.50. In September 2016, the price of international crude oil was about $ 54 a barrel.

According to the report, about 9.34 rupees are spent on one litre of crude oil by adding expenditure and tax etc. to make useable. That is, after one litre of crude oil, the company has about Rs 31. That is, the general public is paying less than 40 rupees on every litre petrol.

Due to the tax imposed by the state governments at the expense of petrol, their rates are much higher in every state. The Central Government has not brought petrol-diesel under the Goods and Services Tax (GST).

Why is petrol of 31 rupees being sold to the public at around Rs 70 to Rs 79 per litre? The answer is simple- due to the taxes imposed by the Modi Government.

Since the year 2014, the Modi government has increased the excise duty of petrol by 126 percent and diesel by 374 percent.

India's Finance Minister Arun Jaitley and the Petroleum Minister Dharmendra Pradhan's statements indicate that the Modi Government is not going to change its current policy at the moment. It is possible to consider this before 2019 Lok Sabha elections.

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