Fuel Economy
The doubts expressed by many when the dynamic fuel pricing was introduced by the Government about two years back giving freedom to the oil companies in India to revise the fuel prices in very short intervals have been vindicated by the subsequent frequent hikes witnessed in the price of petrol and diesel. Small price hikes in close succession are not much different from slow poisoning of the economy. Irrespective of the inflationary figures being churned by the Central Statistics Office which do not have any semblance to the reality, the cost of living is being severely affected by the very frequent rises in fuel prices.
The fact being that more than 60% of the price of petrol consists of central excise duty, VAT, dealer’s commission, entry tax, OMC margin and State Government taxes (with a similar pattern in the case of diesel also), it is well within the central and state governments to bring in adequate mechanisms to keep the price hike under check. The central government is stubbornly reluctant to bring fuel prices within the ambit of GST either. Bringing fuel prices within GST structure would reduce the prices by more than 25%. Incidentally, it is a miracle that the fuel prices remained unchanged for 19 days before the Karnataka Assembly polls.
Fuel price hikes in quick succession are affecting almost all segments of the economy and making life a miserable experience. It is shocking that precious little is being done by the powers that be to address the situation prevailing on the fuel price front. It is high time that the governments both at the centre and of the States took steps not only to apply brakes on fuel price hike but also to bring down the prices to a reasonable level. Otherwise, the wave of national resentment which is gaining strength may become uncontrollable.
The doubts expressed by many when the dynamic fuel pricing was introduced by the Government about two years back giving freedom to the oil companies in India to revise the fuel prices in very short intervals have been vindicated by the subsequent frequent hikes witnessed in the price of petrol and diesel. Small price hikes in close succession are not much different from slow poisoning of the economy. Irrespective of the inflationary figures being churned by the Central Statistics Office which do not have any semblance to the reality, the cost of living is being severely affected by the very frequent rises in fuel prices.
The fact being that more than 60% of the price of petrol consists of central excise duty, VAT, dealer’s commission, entry tax, OMC margin and State Government taxes (with a similar pattern in the case of diesel also), it is well within the central and state governments to bring in adequate mechanisms to keep the price hike under check. The central government is stubbornly reluctant to bring fuel prices within the ambit of GST either. Bringing fuel prices within GST structure would reduce the prices by more than 25%. Incidentally, it is a miracle that the fuel prices remained unchanged for 19 days before the Karnataka Assembly polls.
Fuel price hikes in quick succession are affecting almost all segments of the economy and making life a miserable experience. It is shocking that precious little is being done by the powers that be to address the situation prevailing on the fuel price front. It is high time that the governments both at the centre and of the States took steps not only to apply brakes on fuel price hike but also to bring down the prices to a reasonable level. Otherwise, the wave of national resentment which is gaining strength may become uncontrollable.
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