In the last ten years, Crude oil price in the international market has come down from $115 per barrel to $45 per barrel but Petrol price in India has risen to double.
In 2013, when crude oil price per barrel in the international market was $115, Petrol price per litre in India was 76 rupees. But when in 2018, crude oil price per barrel in the international market is around $80, Petrol price per litre in India are skyrocketing at 90 rupees. Where is money going? Continue reading to know.
If properly investigated, Petrol prices in India are the biggest fraud on the nation. For a common man, understanding the dynamics of Petrol prices is a right but tools to understand it are complex. This is the reason why governments escape the ire of the people, for a temporary period though. Interference of Oil Marketing Companies (OMC) and the introduction of dynamic fuel pricing has made the issue more complicated.
Oil Marketing Companies are those state-owned companies like Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. Earlier, these Oil Marketing Companies used to review fuel prices in every fortnight.
Dynamic fuel pricing policy has hugely benefitted Oil Marketing Companies. Dynamic fuel pricing policy is nothing but a revision of fuel prices on day to day basis. This scheme came into effect from 16th October 2017. The reason for the introduction of this policy, according to Oil Marketing Companies, is that the daily change in crude oil price in international market and currency exchange rate will benefit consumers in India and it was also said that many of the advanced economies of the West following this scheme.
In the initial period, fuel prices went down but 1 or 2 paise per day. However, the highest increase in the day was 53 paise per litre. Later, the fuel prices went up even when crude oil price in the international market went down.
The major cause of the ever-soaring Petrol and Diesel prices in India are the excessive excise duty on crude oil imports. BJP government at centre has increased excise duty eleven times since it came to power in 2014. Between 2011 and 2013, BJP was in front, leading the opposition against Congress-led UPA government. Those who are enjoying the cabinet ministries now led the protests and demanded price-cut. Same leaders from the BJP now have become deaf and dumb to hear and speak on public demand to cut fuel prices.
One more reason for high fuel prices in India is that not aligning domestic petrol price with crude oil prices in the international market in just manner. In other words, OMC’s are not reducing the Petrol prices when crude oil prices in the international market coming down but increasing the price every day with an increase in crude oil price.
Ahead of crucial elections in three BJP ruled states and 2019 general elections; rising fuel prices are a big cause of concern for the party. Even though the general public does not know how the dynamics of fuel prices work but they certainly feel the pinch of skyrocketing prices in their everyday life and this will surely be felt by the party in power during elections.
[source_without_link]SIASAT NEWS[/source_without_link]