But the transportation of other commodities may also increase and that may cause additional payouts in other areas also. This will be an additional budget every month. But whether it is going to stop at this rate or also not known.
My post on special petrol was partly because of this sir. I paid more, first time used special petrol but did not find more. I think almost all middle class people who have to travel to and fro to work and for other commitments will feel the pinch. It would just be a matter of few hundred rupees in a month for us but that is something we can do without. Imagine the honest auto and cab drivers.
This has to be seen against the backdrop that not even a rupee was reduced when the international crude price went rock bottom. There is no proper transparency and convincing explanation on the quantum of hike in such continuous way. It is very clear that the oil companies always insulate their profit margins quoting crude price.
Unlike the price rise in any other product of daily use, even a slight increase in fuel price will have cascading effect in multiple proportions affecting everything of utility and consumption.
The government and the oil companies simply gain by the price hike.
Why can't the government keep the taxes constant on a particular quantum of the fuels irrespective of the price?
Now when the price rises by one rupee the taxes also increase and the government gains. Why can't the government subsidise the fuels only?
The world has to transform gradually to other sources of energy. The government has to encourage and subsidise other forms of energy and oil import substitution. They should encourage mass transport systems by reducing taxes and fares. Ironically the NDA government has only increased the rail fares at every turn on any pretext.
Really very bad. I am sure people's unhappiness will reflect in the coming elections.
I read one news article which mentions that when crude was 174 dollars few years ago, petrol price was 63-65 rupees/liter but now crude is only 69-71 dollars/barrel, the petrol price is around 80. Why this difference?, I presume there would be production costs and other levies that would have gone up.