Fuel prices fuel hot debates but by repeating history in cyclesPetro(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?