The government says that it is not in their power to control the prices of Petrol-Diesel, it is completely dependent on the market. As the price of crude oil increases in the international market, so does the price of petrol and diesel. After Diwali, the excise duty on petrol and diesel was reduced to give relief to the people from inflation, and then there are elections in 5 states. So prices left unchanged for more than 3 months, But not for ever. Experts say that prices likely to increase after election results declared.
Petrol Diesel and Elections
Giving relief to the people suffering from inflation, the excise duty on petrol and diesel was reduced by Rs 5 to 10 on Diwali last year. Taking advantage of the opportunity, the states also reduced the VAT on petrol and diesel. The advantage of this was that the petrol diesel was back on track when it reached 100. But since Diwali, the price of crude oil has reached $ 93 per barrel in the international market, which was at $ 80 per barrel before Diwali. The oil companies are incurring losses at the rate of Rs 8-10 per liter since then. In the election environment, if the oil companies had increased the price, then inflation could have harmed the BJP by becoming an issue. Therefore, there is a ban on rate hike till the election. But after March 10, again the sting of inflation can be felt by the public.
Diesel and petrol are used from growing the grain to delivering it to you. When their prices increase, it is obvious that the prices of other things also go up. The cost of crops for farmers increases. That is, inflation is dependent on oil. But the government can control it if it wants. You ask how? If the government takes the loss of Rs 8-10 per liter to the oil companies, then. But this will result in loss of revenue to the government. Now it has to be seen whether the government is really public friendly or whether the purpose of reducing the price was only to win the election.
Rates today in 4 Big Cities
| City | Petrol | Diesel |
|---|---|---|
| Delhi | 95.41 | 86.67 |
| Mumbai | 109.98 | 94.14 |
| Chennai | 101.40 | 91.43 |
| Kolkata | 104.67 | 89.79 |
| Source: Indian Oil |
Prices before Diwali
| City | Petrol | Diesel |
|---|---|---|
| Delhi | 104.14 | 92.82 |
| Mumbai | 110.12 | 100.66 |
| Chennai | 101.53 | 97.26 |
| Kolkata | 104.80 | 95.93 |
| Source: Indian Oil |
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