Why Petrol Diesel Price Increasing when crude oil under $70 per barrel

Petrol Diesel Price Increasing

The question of Petrol Diesel Price Increasing everyday is confusing common man. The crude oil price in international market is either constant or decreased in last few years. But Petrol Diesel Price keep Rising in Modi government by each passing days. The petrol price already crossed Rs 100 per litre mark few days back. Now diesel price reaching at around Rs 100 per litre. This Petrol Diesel Price policy of Modi Government is beyond the understanding of economist in the country.

Everyone is asking, why government increasing petrol and diesel price when crude oil price has not increased in the same proportion in last few days. Rather crude oil price decreased in international market as per media reports. The weird logic of Modi Government also exposed when they said that the oil companies are independent and take pricing decision based on crude oil price in International market. Let me tell you, petroleum companies never reduced the price when crude oil price goes down in international market.

Why petroleum companies do not increase prices during the elections

The Modi government Petrol Diesel pricing strategy also get exposed before every election. The petroleum companies pause the price rise during election even when crude oil price change in international market. This logic can be better understood when oil prices become consistent for more than 45 days during five assembly election this year. Both government and oil companies does not touch the pricing during the election.

Also Read: French Authority Fines Google for Selling Adx Data to advertisers

But the soon after election results declared on 2nd May. The prices of petrol and diesel started increasing. Petrol has become costlier by Rs 5.57 in Delhi in the last 39 days. At the same time, diesel has become costlier by Rs 6.07. On Saturday, the price of petrol in Delhi went up to Rs 96.18 and the cost of diesel to Rs 87.04. Let me tell you that the Petrol Diesel Price Increasing continuously from last 39 days.

What Petroleum Minister said on price rise in India: Petrol Diesel Price Increasing

Petroleum Minister Dharmendra Pradhan said on Monday that there is no scope for any reduction in the prices of petrol and diesel at present. He attributed this to rising crude oil prices in the international market. Pradhan also said that crude has now crossed $ 70 per barrel. However Pradhan forget, what was the crude oil price when Modi government came in power in 2014. The government’s own data says that the crude oil price was $ 109 per barrel when Narendra Modi came to power in 2014. That time petrol was at 71.51 a litre and diesel was Rs 57.28 litre in the country.

Also Read: Why petrol and diesel price increased by the oil companies in India

The Modi government officials gave another logic behind this prices rise. They said that the value of rupee against dollar is also responsible for oil price rise in India. But this is also fake as one dollar was at around Rs 58.81 in 2014. As per this value, the crude oil was at Rs 6,326.19 per barrel on that time. Now with the same logic, the price of crude has to be at Rs 5199.46 today per barrel considering current dollar rate at around $ 73. Experts believe that government is confusing people and making money in this economic crisis. They don’t have any economic revival plan for the country.

Why government keep increasing petrol diesel prices

It is known that government need money to run populist schemes to win elections. Since the modi government come in power in 2014. They have not focused to improve the economy for earning rather they hit the economy with their weird schemes. Demonetisation scheme of Modi government killed the MSME and real state sector. Similarly GST scheme with problems destroyed the remaining medium and large manufacturing companies. As you know that, these are the sector generate maximum employment and gave direct and indirect taxes revenue to the government.

Also Read: Hindu is in Danger started means UP election on the corner

Since Modi government has low understanding of countries economic condition. Their economic policies has hit the country and made a large number of people unemployed. They also killed many sectors in India with their policy.  This has created impact on their direct and indirect tax earnings. Since then they are struggling to get the money to run their populist schemes. To earn money in this situation they announced disinvestment of governments profit making ventures. They also started increasing taxes and petroleum products to earn easy money. They also pushed RBI to give them their cash reserve for government schemes. Experts believe that the don’t have any vision to revise countries economy rather they want to earn money from Petrol Diesel Price Increase.