The petrol and diesel price increased by the oil companies in India by Rs 2+ recently. This makes Diesel and Petrol price in India at the highest level in the history. The costliest petrol selling in Mumbai at Rs. 90.34 per litre followed by diesel at Rs. 80.51 per litre. The silent increase in petroleum price in India does not get any attention from media companies. None of the opposition parties raising slogan or protesting on street the hike of petrol and diesel price in India. Even the ruling BJP government is not bothering to clarify the reason behind the hike of petroleum products.
The few congress leader including Priyanka Gandhi and Rahul Gandhi raised their voice against the hike of petrol and diesel on social media. Rahul Gandhi twitted and criticised the government for the price hike of Diesel and Petrol India. While Priyanka Gandhi wrote and shared this on her social media profile. But they too not hit the road and protested against the price hike of petroleum products. Interestingly no opposition leader from other political party hit the road and register the protest. It seems both ruling and opposition parties happy with the oil companies decided to increase prices.
What is the real reason behind the hike of Diesel and Petrol price in India?
Apart from politics and opposition reaction on petroleum prices. It is impotent to know the actual reason behind these hike of petroleum product from the oil companies in India. The crude oil prices continuously increasing from last few months. Even the consumption of petroleum products has increased after the relaxation in lockdown from many countries. The confirmation of Covid-19 vaccine has also played an important role in boosting the confidence of oil companies to increase the prices. All these factors are the actual reason for the increase of crude oil price in the international market.
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The crude oil prices have increased from $19 per barrel in March to $49 per barrel at present in International Market. The crude oil prices in the International market operate on many factors apart from demand and supply formula. It is based on pandemic, economy, war, share market, government policies, market predictions etc. These all factors contribute in arriving on final crude oil price from Oil Marketing companies in the world.
Let me tell you that crude oil prices was crashed from $66 to $19 at the beginning of 2020. It was mainly due to Covid-19 cases in many parts of the world. Many countries imposed ban on International Travel during that period. The decision of various governments across the world forced Oil Marketing Companies to lower the crude oil prices in the International market.
Why Indian Oil companies have not passed the benefit to customers after crash in crude oil price
When the crude oil prices crashed in March 2020, Indian oil companies did not pass any benefit to its customer in India. The petrol and diesel price in India continue to operate at its highest level. Even the companies increased the price continuously for many days in mid-Covid-19 time. When opposition parties and common citizen question the oil companies price hike after low crude oil price. The oil companies gave weird reason of profitability and stated loss fo them.
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When the same question asked the ruling BJP government then they pass on entire blame to oil companies. They said the government has nothing to do with oil prices and it is self-regulated from oil companies. But the real game played by the government because the government collect the highest taxes on petroleum products in India. They never wanted to lose the money by reducing the taxes. Rather than they find this as an opportunity to make more money due to the crude oil prices crashed in the International market.
What kind of tax revenue centre and sate government collect on petrol and diesel sales in India
Let me tell you that the centre and state governments make huge revenue from the sales so Diesel and Petrol in India. This is the reason why no political parties take any action when they came in power. They only protest when they are in opposition on fuel price hike for their political mileage.
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At present both state and centre collect approx 60% to 70% tax on petrol and diesel price in India. This is the highest tax collection from any government across the world. For an example, government collect 62% tax on petrol and 57.5% on diesel In Delhi. The other states are not different to this higher tax collection on petroleum products. Let me tell you that the central government increased the excise tax on petroleum product during lockdown stated the lower tax collection and loss of government revenue due to Covid-19. The few states governments followed central government logic and increased their state excise tax on petroleum products during lockdown.
The Mumbai government led by Shivsena increased approx 11% price on petroleum product by imposing access taxes. Similarly, Delhi government led by Aam Aadmi Party increased 10.53% prices of petroleum product in their respective state. By the way, both claimed to most people-centric government in their respective state.
What was the BJP stand on fuel prices when they were in opposition?
This is the same BJP and their leader who use to protest on road for the petrol and diesel prices during the UPA government. The few common faces for such protest was Smriti Irani, Ravi Shankar Prasad, Prakash Javdekar etc. They use to rally on street and protest government and allege to be non-sensitive towards people of India. Now, these leaders are centre minister and they are silent of petrol and diesel price hike in India. Now they seem to be more people-centric with these hike in India.
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When media ask question to Ravi Shankar Prasad for these hike on petrol and diesel prices. He reacted to media with anger and said the government has nothing to do with fuel prices hike in India. This was the same reaction from other BJP leader and minsters on such questions. They do not even bother for such questioned and don’t even reply to these question.
Let me tell you that, Then Gujarat Chief Minister and current Prime Minister also has the same view on petrol prices. He is also saying that the government has nothing to do with petrol and diesel price hike in India. But when he was the Chief Minister of Gujarat, he use to critics UPA government on price hike of commodities and petroleum products.
What was the Congress stand on petrol and diesel price hike in India during UPA government?
This is the same Congress who use to defend the petroleum price hike in Indian. They use to say that the global crude oil price is responsible for the petrol diesel price hike in India. It is interesting to note that then really crude oil prices was highest in the global market. The crude oil prices was fluctuated in and out of approx $100 during the UPA government. Even when crude oil in the international market was at around $100 per barrel. The petroleum prices were much lower than the current NDA government period.
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Let me tell you that then UPA government and their spokesperson at least use to come out and brief about the reason behind the fuel prices in India. They use to get based on the opposition and common man on that time. Now contrary to this no one from BJP, Government or from oil company is coming out and briefing the reason behind the hike of petroleum products in India.
How media use to react on petrol and diesel price during UPA and how they are reacting now
The Indian media use to be very aggressive on petrol and diesel price hike during the UPA government. They use to conduct TV debates in studios and market places. They use to do extensive coverage of petrol and diesel price hike in India and use to ask common man on this issue. Then opposition BJP reaction highlighted in TV coverage on petroleum products price hike everywhere. The print media equally react and write about the petrol and diesel price and criticise then government.
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Now the same TV media and print media doesn’t give any importance to these issues. They do not conduct any TV debate or write the column in their respective newspaper. Few exception need to be noted. But whoever write or speak on these issues get branded as anti-national media by trollers on social media.
Now, this is the full story of government and opposition reaction on petrol and diesel price in India. Everyone one is playing politics as per their convenience and political milage. But the common man keep suffering in this tough time of Covid-19 and income insecurity. Hope some media journalist conscious will push him to write or conduct TV debate on these issues and ask though question from people in power. Although it has very little hope for them to take such decision. The common man will continue to suffer with the greed and profitability of government and oil companies in this tough time of Covid-19. Only god will save them, not these political parties and oil companies.
