To give relief to the common man in the midst of touching prices, the central government can now cut tax on petrol up to Rs 5 per liter. Crude oil is estimated to be around $ 60 per barrel in the global market. Analysts at Bank of America (BofA) said that we have projected a fiscal deficit for FY 2022 to rise 30 basis points to 7.5% of GDP.
With this, the oil tax will be cut by up to Rs 5 per liter. A reduction of Rs 5 per liter of petrol-diesel will increase the burden on the central government by Rs 71,760 crore.
The price of crude imported into India is around $ 62 per barrel. It was close to $ 50 a barrel in mid-December last year. The recovery in global crude oil demand and the production cut by OPEC (crude oil) are seeing a rise in crude oil prices.
On Thursday, the price per liter in the capital Delhi has reached an all-time high of Rs 90.93. Compared to the previous month, it has increased by Rs 5.23 / liter.
Presently, the Center has imposed excise duty of Rs 32.98 per liter and Rs 31.83 per liter on petrol and diesel in Delhi. The GST was introduced on July 1, 2017, but petrol and diesel were kept out of it as the coffers are fed to the central and state governments.