FUEL PRICE: Global prices fall, but India prices rise?
Every time fuel prices shot up shows the political temperature. Now it is BJP's turn as the party at the receiving end. Just corned the Congress led UPA government when BJP was in the opposition. Now opposition take on the government on the streets and online on surging prices. The government has passed the buck to the oil companies, Indian oil and the like, for the hike. Saying that fuel prices are not government regulator anymore and so can't be blamed. It is up the oil companies, the government argument goes, to fix prices based on global prices of cruel oil which is used to refine petrol. Do the numbers bear out. If you look at the number, it is actually showing that global fuel prices are dropping but in India the rising. Global fuel prices has dropped 15% from January of last year to January of this year but in the same period fuel prices in India have gone up anywhere between 7-11%. Crude fall from about 60 dollars a barrel in 2019-2020 to 43 dollars a barrel in 2020-21. In the same period the prices went up from Rs.73 to Rs. 80. This is the part of wider trend over the last two years. In fact, central and states taxes make up almost 60% of fuel prices. The centre almost 37% of tax and state government is about 23% tax on fuel. Not only that the centre has been steadily increasing its tax or its excise on fuel. All of these because many people pointed out the tax from fuel is a very important contributor to a income of centre and the states.
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