There is no respite from the spiralling diesel and petrol prices which is having back-breaking impact on the
sector as fuel prices are not being reduced and the taxes as well as VAT too are on the higher side, it said.
With the global crude oil prices on a downward spiral, it is hoped that it will help major consumers such as India manage fiscal pressures coupled with collateral damage done by corona fallout, it added.
"The cost of the Indian basket of crude, which represents the average of Oman, Dubai and Brent crude, was USD 20.56 a barrel on 17 April, 2020. Brent oil prices have collapsed around 60 per cent since the start of the year while the price of diesel has fallen only by 10 per cent.
From the beginning of the May 2014, the Government did not pass on the benefit of plummeting crude oil prices to the public instead increased profit share of the OMCs by increasing the excise duty.
"Apart from crude oil rates there are two important factors which determine the fuel cost - VAT and Excise Duty - which has increased significantly in last four years. Irony is - we are paying more taxes than the cost of obtaining fuel. Excise Duty was Rs 9.20/litre on Petrol and Rs 3.46/litre on diesel on November 1, 2014," said AIMTC President Kultaran Singh Atwal.
Atwal said the present excise duty is Rs 22.98 per litre (including road cess) on petrol and Rs 18.83 per litre (including road cess) on diesel.
Tax paid for obtaining fuel petrol in Delhi is Rs 37.84 per litre, while it is Rs 28.01 per litre for diesel, he said.