Fuel price hike benefits state govt also


These figures show that the state government earns around Rs 400 crore from petrol and Rs 350 crore from diesel a month.

Kochi: As the price of petrol increased by Rs 5.01 and price of diesel by Rs 4.95 within nine days, huge profit is made by not only the central government and oil companies but the state government too. The petrol price has touched Rs 76.42 per litre and diesel price Rs 70.65 per litre in Kochi.

The state government will get a benefit of Rs 1.50 from one litre petrol and Rs 1.12 from one litre diesel. Even if the price remained the same after this, a monthly profit of Rs 25 crore can be earned from the sale of petrol and Rs 22.80 crore from diesel.

As per statistics, around 16.65 crore litres of petrol and 20.35 crore litres of diesel are sold in the state every month. 30.08 percent sales tax, 1 percent flood cess and Rs 1 as road development cess are charged on one litre petrol whereas 22.76 percent sales tax, 1 percent flood cess and Rs 1 as road development cess are charged on one litre diesel.

These figures show that the state government earns around Rs 400 crore from petrol and Rs 350 crore from diesel a month. This amount will increase if the fuel price is further increased. However, fuel sale has not returned to normal even after lockdown was relaxed.

The fuel price hike affects the pump owners as well. They face a loss of Rs 1.20 lakh per load, which means they have to find an additional Rs 36 lakh a month, said M Radhakrishnan, former secretary of All Kerala Federation of Petroleum Traders (AKFPT). Though there is a condition to revise the commission every six month, it has not been increased for the past five years, he said. Also the electricity expense and wages increased a lot.

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