Haryana is one of the most industrialized states in India, and therefore, fuel prices have a significant impact on its economy. Diesel and petrol are two primary sources of fuel, and their prices are closely monitored by the people of Haryana. This article discusses the current fuel prices in Haryana, factors affecting fuel prices, historical trends, and future projections. It also highlights the impact of fuel price fluctuations on Haryana’s economy and government policies on fuel prices.
Diesel and Petrol Prices in Haryana
Diesel and petrol are the two most significant sources of fuel in Haryana. The prices of these fuels are determined by the central government and vary from state to state. Haryana’s fuel prices are influenced by many factors such as transportation costs, taxation, crude oil prices, and demand-supply dynamics.
Current Diesel Prices in Haryana
As of August 2021, the diesel price in Haryana is around ₹ 89.14 per liter. The diesel price has increased by ₹ 0.20 per liter compared to the previous month. The government of Haryana imposes a value-added tax (VAT) of 16.25% on diesel.
Current Petrol Prices in Haryana
As of August 2021, the petrol price in Haryana is around ₹ 98.97 per liter. The petrol price has increased by ₹ 0.29 per liter compared to the previous month. The government of Haryana imposes a VAT of 25% on petrol.
Haryana Fuel Prices Compared to Other States
The fuel prices in Haryana are relatively high compared to some other states in India. However, the prices are lower than Delhi, where the VAT on diesel is around 30%, and the VAT on petrol is around 30%. The prices are also higher than in some neighboring states like Punjab, where the VAT on diesel is around 16.40%, and the VAT on petrol is around 35.25%.
Factors Influencing Diesel and Petrol Prices in Haryana
The diesel and petrol prices in Haryana are influenced by various factors such as crude oil prices, demand-supply dynamics, transportation costs, and taxes. The central government determines the base price of fuel, and local state governments impose taxes like VAT and cess on top of it. The prices are also influenced by international market trends, as India imports 80% of its crude oil requirements.
Historical Fuel Price Trends in Haryana
The fuel prices in Haryana have been increasing steadily over the years. In 2014, the diesel price in Haryana was around ₹ 55 per liter, and the petrol price was around ₹ 73 per liter. Since then, the prices have increased significantly due to various factors such as rising crude oil prices, inflation, and taxes.
Impact of GST on Fuel Prices in Haryana
The Goods and Services Tax (GST) was introduced in India in 2017, but it excluded petrol and diesel from its ambit. Therefore, the fuel prices in Haryana are not affected by GST. However, there have been demands to bring petrol and diesel under the GST regime to reduce the prices and simplify the tax structure.
Future Projections for Diesel and Petrol Prices in Haryana
The future projections for fuel prices in Haryana are uncertain. It depends on various factors such as crude oil prices, demand-supply dynamics, taxes, and government policies. However, experts predict that the prices may continue to rise in the long run due to various global and domestic factors.
Analysis of Fuel Price Fluctuations in Haryana
The fuel price fluctuations in Haryana have a significant impact on its economy. The rising fuel prices increase the transportation costs, which affect the prices of goods and services. It also affects the inflation rate, which impacts the purchasing power of the people. Moreover, it affects the profitability of industries, particularly those that rely heavily on transportation.
Effects of Fuel Price Changes on Haryana’s Economy
The fuel price changes have a considerable impact on Haryana’s economy. The increasing fuel prices affect the inflation rate, which impacts the purchasing power of the people. It also affects the profitability of industries, particularly those that rely heavily on transportation. Moreover, it affects the government’s fiscal position since fuel taxes are a significant source of revenue for the government.
Government Policies on Fuel Prices in Haryana
The government of Haryana imposes VAT on diesel and petrol, which is a significant source of revenue for the state. The government has been criticized for imposing high taxes on fuel, which makes the prices significantly higher than in some other states. The government has also announced various measures to reduce the prices, such as reducing VAT on diesel to 16.25% from 16.40%, but it has not made significant changes in petrol prices.
In conclusion, the fuel prices in Haryana are influenced by various factors such as crude oil prices, demand-supply dynamics, taxes, and transportation costs. The rising fuel prices have a significant impact on Haryana’s economy, affecting the inflation rate, purchasing power, and profitability of industries. The government policies on fuel prices also play a crucial role in determining the prices. The future projections for fuel prices in Haryana are uncertain, and it depends on various global and domestic factors. However, the government needs to adopt a balanced approach to reduce the prices while maintaining its revenue position.
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