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  • Category: Miscellaneous

    Fuel prices fuel hot debates but by repeating history in cycles

    Petro(and diesel) price rise is as hot a topic now among people as they make the engines.
    In this context, a small journey back will reveal a lot of information, which should give us thinking matter.
    The rationale for raising the fuel price is given to be the international crude price and the rupee dollar exchange rate.
    I spent a little time and from the figures picked out from the data sheets here are some outputs for your analysis and forming opinion.

    As I cannot give in tables I give in a sequence as:
    the period - price of crude in USD- Re-dollar rate--price of crude in INR- price of petrol in Delhi

    1. March 2013 --117.79—50.66—5967—71.38(raised from 65.64 to71.38 in May)
    2. Jun 25,2014 – 107---—60—----6420---71.56
    3. Feb 2016 --------30--------68------2040----59.61
    4. May, 2018------ 71--------68----4828 ---- 74.63 (Mumbai-82.43)

    A simple calculation on the proportionate values should tell us that the selling price of petrol in February 2016 should have been just 25 rupees or so and in May 2018 it should be around 55 rupees.

    So even though one blames the other, the centre and states have got a huge income from the taxes levied on petrol and diesel during all these period.(Though for namesake gimmicks a couple of rupees here and there they had tweaked to gain publicity). The finger pointing is just politics.

    I would also like to take your attention to a news headline in Indian Express on May 25, 2012 and I quote" BJP says petrol price hike unreasonable, warns of agitation"

    Shall we laugh or cry?
  • #637319
    One of the noteworthy achievements of Modi Govt is the reduction of Fiscal deficit from 4.5% to 3.2% of GDP.Previous Congress Govt has miserably failed in this account. This reduction in fiscal deficit is entirely attributed to increase in Centre's tax revenue from Petrol and diesel only. Excise duty on petrol and diesel has been hiked nine times since 2014.Falling international oil prices has not been transferred to the common man instead it improved overall finances of the country.
    Yes. It is an achievement by PM Mody & Arun Jaitely for 2019.

  • #637321
    Mr Neeraj, I guess you do agree that the fiscal deficit has been reduced only because the excise duties on petrol and diesel have been hiked up to nine times, and the cost has been passed on to the consumer.

    So, you also claim that it is a great achievement, in reducing the fiscal deficit!!

    This is a totally unfair kind of an assessment of the situation, because the common man has suffered so much. Do you know Sir, that to reduce fiscal deficit, the Government has to reduce expenditure also?

    Do you know that our great Modi, who claims to be working tirelessly for the common man, came all the way to Coimbatore, to take part in a private function of a Yoga guru, who is a very controversial guy and inaugurate a Shiva statue?

    We, the innocent people, were told that the trip cost the Government nothing less than fifteen lakh rupees. Who will finance all this Sir? The Union Ministers also go to various parts of the party doing all sorts of things, but nothing worth the salt?

    Is there a single scheme of the Union Government that has impacted the common man Sir? There has been just one Pension scheme to talk about, at eight percent interest. This, when the actual inflation at the retail level, is over nine percent. The Government may claim that inflation is less, but the common man will understand that it is not so.

    I do not think the fiscal deficit has been done through the right ways. It is not a great achievement at all.

  • #637338
    Fuel price hike is a global phenomenon and linked to the oil production or control on oil production by the oil-producing countries. It is inevitable. Our Govt is not doing this rise.

    Only thing is how much burden the Govt can take and not pass it out to the consumer.

    Another aspect is those who are going to their offices or traveling to other places in shared taxis, buses, rickshaw, local train etc - why they are bothered for this rise?

    This question is very pertinent because the people who have a car and can afford it can also pay for the slightly increased price of petrol also. We should also remember that when the petrol prices go down then also only these people get that advantage and not those who go by bus or train.

    Knowledge is power.

  • #637340
    It is the big fact that fuel pricing has been always under the doubt as there is no transparency and people are forced to accept the pricing at the whims and fancies of the oil companies. When the government earlier can give subsidy and pass on the benefits to the people, why it was discontinued and the pricing authority given to the oil companies who are not transparent as to what makes them to raise the prices daily. There seems to lots of money running into crores being benefited by central and state governments and I fear is there any accountability on both of them. Ombudsman needed for fuel pricing.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease


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