The ever increasing fuel price

Sometimes it feels like the Governments do not spare the common man on one single utility. Specially in India, where there are multiple Tax layers. A common man first pays tax on the salary earned and then tax on every single commodity and service. The fuel price in India just keeps increasing by the day. There is tax from the state as well as the central governments. India is one of the most highly taxed Country on fuel in the world. Almost 50% of the petrol price is taxes which includes the Central Excise duty , the VAT and surcharges. The Government mentions that the Tax money is used on welfare scheme. But what welfare when you almost squeeze the consumer.

Petrol is also a necessity in day-to-day life. People need to commute, if not in cars, then at least on bikes and for that also fuel is needed. Yes, India does not have oil reserves and majority of the crude oil is imported and with the depreciating rupee value the oil companies have to pay more on the import of crude oil, which makes it expensive and then paying up almost equal amount of taxes takes it altogether to the next level.

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Now with the Russia - Ukraine war the prices have gone up further because with the sanctions on Russia many countries have stopped import of crude oil from Russia and with the reduction of supply in crude oil the prices have further increased. This is one commodity that has always been very heavy on the pocket and it finally digs the pockets of every common man.

When I moved to Oman, the first relief I had was on the fuel cost. In the beginning when I had come the price was 1/3rd of what I would pay back in India but in the last 3 years with the global crises price have gone up here as well and now it's a little less than half of what I would pay back in India. Oman does not import crude oil as it has its own production and then there are no taxes which gives a big relief to the end consumer. India does not have enough crude oil production and hence import is inevitable but it can surely work on the Taxes and give relief to the end consumers.

There is a ripple effect of it, with the high cost of fuel, transportation cost increases and that results in the increase prices of every other commodity. There are ways and means to work on it by the government and reduce the tax burden on the common man by alternating it with other options, but this is a milking cow for them so will they ever do it is a big question.

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