Petrol price hike has again been inflicted on consumers. This will cause a double blow to almost every Indian who is already suffering from loss of incomes in lockdown and increased commodity prices!
It is not entirely true that Government has no hold on the petrol prices since they have been deregulated. Interestingly, there is a direct connection between them and elections. The price hikes are generally paused during elections times irrespective of the international crude prices and/or dollar rates.
That is what happened in the recent elections that were held in few states of India. Now, with the elections over petrol prices have again started an upward swing. Petrol and diesel prices were raised for the thirteenth time this month. Petrol became costlier by 23 paisa whereas diesel was dearer by 25 paisa. Effective price increment is whopping Rs 3.04 for petrol and Rs 3.59 for diesel.
Prices of petrol are at record levels. They have already crossed Rs 100 per liter in few cities of the country due to the incessant price hikes in the last few months. This has been done despite the lower international crude prices and relatively stable dollar.
It must be known that out of Rs 94 odd you pay for the price of petrol in Delhi, almost Rs 55 are taxes and various other levies. Base price of petrol is only around Rs 34-33. If prices were directly dependent on international crude prices, they would have gone dirt cheap around March-April 2020 when crude oil plunged to extremely low levels. However, the Government, instead of passing it onto the consumers, pocketed most of the gains by increasing taxes.
Source – NDTV Auto