The government of India has hiked petrol prices once more, by about Rs2.50 per litre. What must surely hurt the customer is that the latest hike comes a month after the hike in December. The reason is that since June 2010, the state run oil companies are free to set pump prices in tandem with global crude. In the last six months, there have been six price revisions for petrol. As opposed to this, the government has capped prices of diesel and kitchen fuels much below their cost of production owing to inflationary pressures. The government had promised at the time of deregulating petrol prices that it will step in if crude went beyond a point. Can anyone tell what that threshold point as nothing of is as such mentioned specifically by the government?
The government claims it had no choice given that crude prices had touched $92 per barrel. Yet, millions of consumers, who use scooters and motorcycles or drive in small cars to get to work, will feel let down. What makes the government’s statement about rising crude suspect is that it has simply refused to hike the prices of diesel, kerosene, and LPG (liquefied petroleum gas), claiming it will stoke inflation and burden households that use kerosene and LPG. This means that oil marketing companies (OMC) will still incur huge losses because 60% of their products comprise diesel, kerosene, and LPG.
Out of every rupee spent on petrol, much of it goes to the government by way of taxes and levies. Yet, revenue can be earned from other areas rather than hitting the common man where it hurts the most: in his daily commute to office or factory.
Lastly....politics hots up over hike in petrol price.
(Image source: Topnews.in)
