After it okayed a proposal to raise petrol prices (for the second time in four months), Indian Oil, Bharat Petroleum and Hindustan Petroleum raised prices across the country by Rs3.14-Rs3.32 a litre, effective last midnight.
The government, it seems, wants you to park your car or two-wheeler in the garage and use public transport.
After it okayed a proposal to raise petrol prices (for the second time in four months), Indian Oil, Bharat Petroleum and Hindustan Petroleum raised prices across the country by Rs3.14-Rs3.32 a litre, effective last midnight.
The government’s decision came in the wake of a decline in the rupee’s exchange value, which led to an increase in crude oil prices and losses for the oil-marketing companies.
So, how much do you now pay for a litre of petrol? Experts said the price in Mumbai would go up to Rs71.92 from the current Rs68.62 a litre. This would include additional state government taxes.
The increase will not affect public transport, which uses diesel or CNG. “It is a vicious cycle of never-ending hikes. It needs to stop somewhere,” Rajneesh Desai, a consumer rights activist, said. “If the government cannot control the basic price of petrol because of international fluctuations, they can at least take steps to reduce various taxes.”
Nitin Dossa, chairman of Western India Automobile Association, lambasted the government.
He said the central government was not serious about safeguarding the interests of the common man. “The way things are going, petrol will cost more than Rs100 a litre by December. State taxes over petrol price are the highest in Maharashtra… this is unfair,” he said.
And there is more trouble in store for the common man. An empowered group of ministers, headed by finance minister Pranab Mukherjee, will meet on Friday to consider limiting the supply of subsidised LPG cylinders to 4-6 per household in a year.
The move, aimed at cutting the government’s fuel subsidy bill by about Rs20,000 crore, would mean once you are through with the subsidised quota, you will have to pay anywhere between Rs600 and Rs700 to get a cylinder.
The three oil companies lost Rs2,450 crore this fiscal by selling petrol below the cost. Apart from that, the companies lose Rs263 crore a day by selling diesel, domestic LPG and kerosene below cost. Diesel is sold at a subsidy of Rs6.05 a litre, kerosene at Rs23.25 a litre and domestic LPG rates are under-priced by Rs267 per cylinder (14.2-kg).
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