Petrol prices in Mumbai breached Rs 85 on Thursday, with the fuel selling at Rs 85.29 a litre, 30 paise more than Wednesday's price of Rs 84.99 a litre. This shows that higher petrol and diesel prices can not be ignored from a political viewpoint in our country.
The wheel has come full circle now. It is result of this all that petrol prices have hit highest level under present government and diesel too is at record high these days.
On Thursday, petrol and diesel prices were raised for the 11th consecutive day as the state-owned oil firms gradually passed on to the consumer the increased cost of worldwide oil that had accumulated since a 19-day freeze was imposed just before Karnataka elections.
M. K. Surana, chairman of state-run fuel retailer and refiner Hindustan Petroleum Corp, said the government should review taxation of petrol and diesel to provide relief to the customer. Well, it is not something that is being only faced by the Modi government. "GST will ensure a single tax". Opposition leaders have criticised the government for failing to rein in rising fuel prices, a politically-sensitive issue in one of the world's biggest economies. Petrol costs Rs 76.17 per litre in Delhi while diesel sells for Rs 68.34. This is because of the global oil price fluctuation. Household petroleum and diesel costs are resolved extensively by unrefined petroleum cost in the worldwide market and the rupee-dollar swapping scale.
As protests against rising petrol and diesel prices grow, the government has said that it is working on finding a "long-term solutions".
Presently, petrol and diesel prices hike is mainly in the Delhi, Mumbai and Chennai cities.
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Indian petrol and diesel prices are benchmarked against Singapore gasoline prices and Arab Gulf diesel prices, which mostly track movements in crude oil prices.
Talks are also on to reimburse the dealers their commission.
He urged Chief Minister Arvind Kejriwal that the Delhi government should immediately reduce 5% Value-Added Tax on petrol and diesel to provide some relief to the people of Delhi as advised by the Centre. The reason is obvious. Thus VAT on petrol was increased by 5% and on diesel by 4.1%. This obviously puts a question mark on government's intentions.
Interestingly the only time duties on crude prices were cut was last October by Rs. 2 per litre in the run-up to the Gujarat elections while crude prices were kept on a standby during the Karnataka elections. #FuelLootBySuitBoot handle trended on Twitter throughout yesterday, May 22. Its political fallout could be as grave as that of the government's lacklustre performance in terms of generation of jobs and virtually all other sectors.
The 10-day relentless price increases built pressure on the government for cutting excise duty to give immediate relief to consumers but after a meeting of the Union Cabinet headed by Prime Minister Narendra Modi, Law and IT Minister Ravi Shankar Prasad offered little insight if a reduction in tax was coming. "Unless the weakening rupee recovers in the next few days and weeks, the price of fuel will go up even if crude stays at the same price", he added.