Oct 22, 2021

Fuel prices to dip if taxes slashed?

Analysts in the energy sector point out that there is no need to increase fuel prices if taxes imposed on fuel are reduced or eliminated.

At present, taxes generated per litre of fuel used by consumers are as follows : Diesel - Rs. 14, Octane 92 Petrol - Rs. 42, Super Diesel - Rs. 38, Octane 95 Petrol - Rs. 65.

Accordingly, if the tax is scrapped, a litre of Diesel and Octane 92 Petrol could be priced at Rs. 92 and Rs. 115 respectively, they point out.

Instead of completely removing the tax, if it is merely reduced, the public could be given some relief at the present where global oil prices are soaring, they further note.

Taxes on fuel is one of the largest tax revenue means of the state, with the figure at Rs. 160 billion in 2020. The responsibility of removing increasing or decreasing taxes on fuel, lies with the ministry of Finance.

(Source : Ada)