A day after the Assembly election results were declared, state-owned oil marketing companies (OMCs) on Saturday decided to go ahead with the increase of Rs.5 a litre in petrol price.
The biggest-ever increase in petrol prices, and the eighth since the prices were deregulated in June last year, will come into force from midnight on Saturday night.
The cost of petrol a litre (in Indian Oil Corporation outlets) in Delhi will go up from Rs.58.37 to Rs.63.37 (up by Rs.5, including the tax component); from Rs.61.93 to Rs.67.22 (Rs.5.29) in Chennai; from Rs.63.08 to Rs.68.33 (Rs.5.25) in Mumbai and from Rs.62.50 to Rs.67.71 (Rs.5.21) in Kolkata.
Bharat Petroleum and Hindustan Petroleum also increased petrol prices by Rs.4.99 and Rs.5.01. However, they said that even after the increase they would still make a loss of Rs.5.50 a litre.
Hinting that another increase was inevitable unless the government decided to compensate the losses they incurred, a senior official of an oil marketing company said the companies approached the government for an increase of Rs.10.50 a litre due to the hike in international crude prices and the high debt burden, but were told to increase the prices by Rs.5. Notably, the companies had been holding back this increase even after crude oil prices touched a two-and-a-half-year high in January this year.
“Though the government might have deregulated petrol prices last year, we still have to seek clearance before announcing any increase. All our requests to the government to devise a mechanism to compensate for losses have not been answered so far. If the Centre does not want the burden to be passed on to consumers, it should compensate us,” the official said.
Keywords: oil price hike
I was reading since 1990 & post-economic liberalisation, the prices will go-up to the level continuously and on one day we have to pay the full price of the commodity. Government should think putting a luxury fuel tax on the vehicle which are categorized as premium segment. Should think of issuing smart cards alongwith the car without which fuel cannot purchased . The fuel price has to be charged extra based on the engine power,the extra percentage should be captured in the smart card. By this even they can category the transporation services and charge the extra percentage based on service nature.
Only in India - it's cheaper to fuel planes than cars. This is what aam admi gets for voting for Congress and allies. ATF costs Rs 60.56 a litre in New Delhi. A further price cut of Rs 1.8 was announced on Sunday. Petrol costs Rs 63.37 a litre.http://www.business-standard.com/india/news/now-its-cheaper-to-fuel-planes-than-cars/435684
I am not sure if the diesel price has not been hiked so as to reduce the inflation at the same time get the amount compensated from the poor middle class of 2 wheelers and petrol car owners. Fact of the matter is half of the price we pay goes to Central govt account as various taxes so the govt cant wash their hands of having no control over the fuel price and is not fully according to International market.
We should revoke the free bies like free Air Travel, Train Travel, Cars, etc to the MP's and MLA's. Let them fill the fuel at their own cost only then they will realize the problem of a common man.
Congress would have lost in Kerala if they had increased the price of petrol before 13th April. The central government should be thrown out from there. They are least concerned about the poor and middle class of India.
The petroleum price hikes exist as a continuous story for a very long time because of some natural cause and also due to other strikes. In our country population and trade mechanisms are rapidly growing and we still depend on developed nation for the technological advancements!! Why we Indians can't find a solution for it by finding an alternative petroleum product!?!? instead of scolding the governments and oil companies...
I have a major doubt of using paise?? We are only using Rupees after LPG and the utility of paise have been reduced so far... Now there is no usage of paises except 50paise... Then why should government keeps following the Rupee and paise system?? If it is necessary then it should be issued among public as other Rupee notes... We are losing so much of Rupees on that and there is a huge conflict between the customer and cashier every time...
UPA is the govt of Corporates & the Corrupt and NOT of Aam Aadmi. In the name of Market Determined Price mechanism, it has given free license of institutional loot to Oil companies. Whole of their logic is based on mounting international prices, that's fair enough, but I have never seen domestic prices go down whenever the oil prices dip in international market! This might be good economics but pathetic polity. I would not be surprised to see many more hikes as there are no elections anytime soon. Moreover, while they take weeks to respond to plight of farmers and uses the might of state to crush the poor man's voice, the slightest of concerns of corporates are promptly handled and personal meetings are arranged at the highest levels to allay their fears. The air of arrogance is palpable among the leaders of UPA, they seems to have no regard to plight of the poor. I hope they will take a lesson from CPM's defeat in WB otherwise People will surely teach them a lesson in 2014. UPA should not forget that upper middle class and rich class (towards whom their economic policies are targeted) don't count electorally and their ministers & MP's will have to face the rural poor & farmers only in elections. May the good sense prevail.
It was there around the corner waiting to happen and now its done. What is the purpose in keeping on increasing the price of fuel, is the indirectly wanting its citizens to forego use of fuel for personal consumption and become a green nation. As we are still predominantly a middle class economy this rise would further hurt the people, who are already aggrieved by the inflation. Why the govt never controls the cuts upon the duties and reduce the losses of OMC's instead of passing it on the people.
Perhaps it would be a nice idea to implement sustainable modes of travel and transport for short distances such as horse carriages and bullock carts. The sky rocketing prices of petrol is a setback to average middle class and low income families. The oil companies have become confident that how much ever they increase the prices, Indians will pay for it. India should try other alternative and encourage research into better fuel alternatives, solar powered or electric vehicles.
If people want something than they do not care about prise but the question is that they have to pay it out or are to.So if there is a need to hike the prises of petrol,because the prise of crude oil is going high at international level,in a reasonable manner otherwise it would not be in favor of people and government should also go for subsidy because hike with Rs. 5 is not a piece of cake to which people can easily digest.
Taxes make up about 50% of the price to consumers. Is it not time for the government to revise the tax component?
Its ridiculous. The government has no control over the prices of the things of basic necessities. And this government talks about the common man problems!!!! Most of the system in every country is based on the fuel(transportation).The situation of the public transport is worst as I see in metro cities. The govt should provide the alternates for that also.
Increase of five Rupees in petrol prices means an increase of more than eight percent. Price of diesel also may be increased by more than 8 percent,because UPA has no problem in giving the clearance. It is matter of concern that who is going to pay? Mercedes, BMW class or Maruti-800,Alto class or two wheeler-wheel-less villagers. Let us think which commodity is not going to be affected by these hikes.
None of the oil companies have ever reduced the rates when the price of crude oil falls...this is ripping and every one who is suppose to listen have gone deaf
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