Petrol Cheaper by Rs.2, But is it the End of Woes?

Prices of one of the most sought after and cried upon fuel, Petrol saw an unprecedented move after Jan 2009 – a reduction! Petrol has been made cheaper by more than Rs.2 all over the country. This reduction has come after a lot of hue and cry and immense political pressure.

The cut, which in actuality is Rs 1.85 per liter, mounts to over 2 rupees after adding the various state taxes and octrois to the reduction. The cut in various cities of India is as follows:

  • Delhi : Rs 2.22
  • Mumbai: Rs 2.34
  • Chennai: Rs 2.35
  • Kolkata: Rs 2.34
  • Bangalore: Rs 2.43
  • Pune: Rs 2.39

The price cut which is in excess of 3% comes after a long wait of 33 months which included insane petrol hikes every ‘nappy change’. Though the government says it doesn’t have control over petrol prices after deregulation but in reality it seems, PSU’s take an informal nod from the government before each price change. Though this time also the government declined any involvement, but it seems that it was due to the immense political pressure this move was made.

The reduction is already in effect and people can fuel their motor vehicles at the reduced rates. Meanwhile, private oil major Shell, which increased prices along with the PSU’s also reduced prices of its petrol by a similar margin of Rs.2.

On the other hand oil companies have raised jet fuel prices by 1.95 percent today itself. Now the biggest question remains – is this the end of woes for an average Indian? I really feel it’s NOT! Until the government decides to abolish the necessary fuels of octrois and senseless taxes, we would not get any long term respite. I might come again next month (or probably next fortnight) and write about another hike.

As soon as this was done, I calculated my approximate benefits and the minimal decrease would help me save approximately Rs.100 a month. Now, shall I call that as any saving? How much would you save?

– Saad Khan

Price of Petrol in Pune:

  • Old : 74.13 Rs/liter
  • New: 71.74 Rs/Liter

Price of Petrol in Mumbai:

  • Old: 73.81 Rs/Ltr
  • New: 71.47 Rs/ltr

Price change in Bangalore:

  • Old: 76.79 Rs/ltr
  • New: 74.36 Rs/ltr

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