1. Oil is a critical factor in any economy. India’s dependence on oil imports is 80 per cent.
2. When crude oil prices collapsed in 2014 and brought a windfall, the Central Budget was based on low prices. Low oil prices gave room to the BJP-NDA government and state governments to tax the consumer to the hilt and garner large resources without fuelling inflation.
3. Altogether, it was a good time for the government: it reaped a windfall without sparing a thought for what it would do when oil prices rose again.
4. Look at the revenues collected by the Central government and state governments in recent years from taxes on petrol and diesel (see table). 
5. The flip side was increased dependence on taxes on petroleum and petroleum products. The Central government’s receipts from such taxes as a percentage of total revenue receipts have steadily increased from 15 per cent in 2013-14 to 24 per cent in 2016-17.
6. The burden of high taxes on petroleum and diesel is borne by the people. They do so silently — what choice do they have? — but not willingly.
7. As the price of crude oil rises, the government is clueless and floundering. The prognosis, therefore, is crushing taxes, higher prices and greater burden on the average consumer.
