Motorists can expect another massive fuel price hike at the beginning of June, the Automobile Association warned on Tuesday.
I want to ask that when in price hike was not justifiable when the price of crude oil was higher than today, then why today when the crude oil price is almost half, then why the government is trying to justify this price rise? Previously this was implemented Petrol price hike pilot basis in 5 cities viz.
Udaipur, Jamshedpur, Vishakhapatnam, Puducherry and Chandigarh for 40 days from 5 may Before this mechanism, the price was changed on 1st and 16th of every month based on the average price of crude oil and foreign exchange rate of the preceding 15 days.
This shift in price determination has been backed by the argument that, this mechanism will ensure that even the slightest benefit of the change in the oil international market should be delivered to the bottom line i. But it seems that this mechanism is not able to serve its purpose as the crude oil price low but the consumer is not getting the benefit of the same.
So as per the logic of DFP, the price of petrol should decrease but instead, it is touching the new high every day. So why these prices are not coming down, the reason behind this is that the petroleum sector is considered and used as big money generating industry, the real issue is with petrol policy of India.
According to which only government is getting benefits but not the public and this thing are clear from the amount of revenue that government gets from the petroleum sector. Petroleum product is not a money tree from the central government only but state governments also generate a major part of their revenue from it.
Every state imposes VAT on the price of petroleum product whose rate is different in the different state. As per the report of PPAC i. So in an all we need to pay India is way ahead of its neighbouring country in the price of petrol which can be seen in below image.
Is there any way to reduce these prices? As we see that in the price of the petrol that we pay is taxes, so to reduce the price of petroleum product taxes needs to be reduced and that can only be done by taking these products under GST.
Even petroleum minister Mr Dharmendra Pradhan is also suggesting the same. In this council majority is of state representative and states are in opposition of taking petrol product in GST because if petrol comes under it then it will cut down their revenue that they are getting from petrol.
In the end, I just want to say that government need to reduce the price of this daily need thing. Because price rise of petrol product either directly or indirectly increases the prices of other products and services which result in the high inflation rate.
As of now the only way of doing this is to include them also in GST and for this along with the central government state governments also need to take some steps in the positive direction.Petrol price hike: Good news likely as Dharmendra Pradhan set to meet oil firms today - 5 points - Good news might come for the common man soon, as Oil Minister Dharmendra Pradhan is expected to meet the oil firms in the evening.
Saudi Arabia has increased the price of petrol, as it looks to curb the rapid growth in domestic consumption of energy products in the kingdom. Effective from January 1, the Ministry of Energy, Industry and Mineral Resources announced plans to increase the price of Octane 91 fuel from riyals.
Oct 14, · Fuel Prices Hike Again, Petrol At Rs. In Delhi ANI | Sunday October 14, Fuel prices continue to burn holes in the pocket of common people, showing no sign of .
Fuel price hike: Petrol price up to Rs in Delhi, diesel Rs Fuel price witnessed a hike once again on Tuesday morning across the four metros.
Oct 09, , AM IST. Petrol price has since risen by Rs per litre and diesel by Rs - the most in any one-month period since the daily revision in fuel prices was introduced in June last year.
Rates vary from city to city and from the pump to pump depending on local taxes and transportation cost. The petrol and diesel prices were hiked by a steep Rs per ltr and Rs per ltr respectively on 16th March, by the oil marketing companies citing sharp increase in international crude oil prices.
This arguments looks fine, if the same set of consumers were being benefited by lower international crude oil prices.