We have been showered with the news of the increasing price of petrol and diesel in our country. During NDA (2004), the petrol was Rs.35.71, which is Rs.73.31, as you can see now.
“Sardar, who is not Asardar”, said by Prime Minister Shri Narendra Modi at the time of fuel price hike under Manmohan’s UPA govt. and now conditions are worse.
The ‘petrol fee’ hike: Everybody can see the petrol price hike in cities right now. We don’t have to tell the price and then classify which is high and low according to each city. Well, an international example can be taken like of Malaysia, the price difference is too much-Rs.32.19. diesel is at 31.59 which are 44% less than India’s. The matter of concern is that, that yet the global price of crude oil is scaling down to mid-$60 per barrel, the price of petrol can’t be lowered down. State Govt. can cut down the price by Rs.2.65 giving up on their additional gain, but obviously can’t do!
Reasons of petrol hike right now: India’s petrol and diesel price is the costliest among the whole Southeast Asia, surprised? Taxes are the main reason for this increase. They constitute 47% to 52% of the total retail price, a big reason! As written above, crude oil price reduction can bring down oil price still, the barrel which actually cost $47.56 in 2016-17 is 60 dollars now. Organization of the Petroleum Exporting Country (OPEC) has reduced the supply and cost, the local countrymen have to pay. With rising crude price and falling Indian rupee, petroleum’s price is bound to each at its peak! Diesel is already at Rs.76.24.
Consequences of hike: On an average, petrol price takes up to 20% of the daily income, worried? The price hike can affect the daily commodities, foreign trips and make loans costlier. Fuel bills basically can give you a high of Rs.1250 in May 2018 for same 900 km which will cost less as compared in May 2016. Nobody is hidden from the fact that petrol hike will affect the cost of transportation of goods. High inflation may cause RBI to increase interest rates. Either education or trip abroad will burn the pockets because of rupee declining. For poor people who spend half an income on food will find more difficult to feed them as food price will increase. Already with an implementation of GST, the food price almost rose with some percentage as you can see in any bills of Mc D’s previous and after GST and now this hike. All hikes won’t affect the govt. employees as their DAs will be increased.
What can be done?: The easiest technique could be more use of public transport, one way to reduce vehicles as they even contribute to hike in petrol price, pollution could be another and third, we can provide a wage to those lower class poor auto-rickshaw-walas. Bio-diesel and solar energy development could help, only if they are implemented and not just written in articles. Between Nov 2014 and Jan 2016, excise duty was raised to Rs.11.77 per litre as crude was going down but now since the price of everything has reached high, it’s time to cut excise duty. The Economic Research Dept. of SBI has suggested some measures to cut down fuel price. Govt. too can insulate retail prices from the volatility in global crude oil price. When ICEX gets clearance from SEBI, the new products can be launched. Govt. is also looking forward to ONGC to share the burden of the price hike.
Anubhuti is a second-year student of English Literature at Delhi University. She likes writing and thinks that writing is her will to express an opinion. She also lives by this very nature of writing as she starts to explore the excellent opportunity of interning with StarWords India. Getting a chance with a passionate firm has escalated and ignited her to believe and follow what she loves. Now, she can push her existential boundaries of knowledge.