July 15, 2024
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Petrol Price Hike and its Reduce; States and the Concern

Petrol Price hike was increasing day by day due to which the common people are facing a lot of trouble. Petrol price has hit a century for the first time in history in the State capital, causing much worry to consumers and commuters alike. According to energy experts, petrol and diesel prices are likely to rise in the coming months. The bulk rate has been increased by Rs 6.70. According to the reports, the kerosene price has touched a record high for the first time in history.

The price hike follows international oil prices arise to near three-year high as global output interferences forced energy companies to draw more crude oil out of their store. India is relies on imports to satisfy nearly 85% of its oil needs and so standards local fuel rates to international oil prices. On the flip side, diesel price in the national capital crossed Rs 90 per litre for the primary time, and it is one hike away from rupturing Rs 98 per litre in Mumbai. Diesel costs Rs 93.27 per litre in Kolkata and Rs 94.74 per litre in Chennai.

Experts have raised concern over high fuel prices that have already forced many companies to increase the costs of their goods. This is because higher fuel prices directly impact the input cost that goes into manufacturing or delivering a product. The fact that fuel prices are going up during the all-important third quarter, which sees high demand, could reduce the pace of economic recovery significantly as consumer view would be hit. As per the concerns, the Centre and state governments have made it clear that there will be no reduction in taxes fined on fuel. It may be noted that India fines one of the highest taxes on fuel in the world. If fuel prices keep rising additionally, it will lead to a sharp rise in inflation and directly affect consumer demand, which is one of the most important drivers of economic growth.

According to the reports only 3 % of the population pays the taxes. If a proper chart prepared for tax paying an amount of problems can be solved and our country will develop. While not paying the tax and troubling the common people by increasing the price of fuels is highly unacceptable. But now the fuel price has been decided to reduce by the centre. 18 states and six union territories reduced prices. UP and Haryana have reduced central taxes by Rs 12 a liter. The BJP is putting similar pressure on Bengal and the Congress-ruled states. The Congress points out that in the last 18 months alone, there has been an increase of Rs 35 for petrol and Rs 26 for diesel. Therefore, the Congress-ruled states are of the view that concessions of only five rupees and ten rupees are not at all comforting. In general, all opposition parties are of the view that taxes should be reduced under the pressure of the BJP. The government of Kerala is in the thought that price shouldn’t be reduced and if decided then only Rs 1 or Rs 1.50 should be reduced. But the announcement made by PM Modi of price reduce has now became a trouble for the government of Kerala.

Pic Courtesy: google/ images are subject to copyright


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