1. Petrol price has risen by over Rs 5 per litre, but you may be forgiven for not noticing

Petrol price has risen by over Rs 5 per litre, but you may be forgiven for not noticing

Petrol price has been on the upmove since June-end, with the oil companies continuously raising it in small doses everyday, barring a few even smaller cuts in between. It has since risen by Rs 5.42 per litre in Delhi, barely to anyone's notice.

By: | Published: August 24, 2017 12:59 PM
Petrol price started rising in June-end for the first time since the implementation of daily fuel price revision, beginning with a humble 1 paisa per litre hike on June 28-29 — an amount not worth batting an eyelid. (Image: Reuters)

Petrol price has been on a rise, and how. But unlike earlier, this time there has been no fuss around the increase in the price of a traditionally politically sensitive item, on which even a minuscule hike would lead to strikes and street protests in the good old times. Many of you might be surprised to know that this time petrol price has risen by a whopping Rs 5.27 per litre in less than two months, and that too barely to anyone’s notice.

The reason: Dynamic fuel pricing — a mechanism introduced on June 16 for revising retail fuel prices daily across the nation in conjunction with the change in the crude oil prices. Narendra Modi administration’s novel scheme — OK, not so novel after all, since it has been in practice in several other parts of the world — ensured that the customers, and more importantly, the oil marketing companies, do not feel the pinch of keeping fuel prices static for up to 15 day even if the crude oil starts rising rapidly, as was the earlier practice.

Immediate price cuts followed. Petrol prices fell by Rs 3.45 per litre in just a span of 13 days, with the oil companies cutting prices or keeping it unchanged for 12 days in a row. Then, it started rising, beginning with a humble 1 paisa per litre hike on June 28-29 — an amount not worth batting an eyelid.

Petrol price has been on the upmove since then, with the oil companies continuously raising it in small doses everyday, barring a few even smaller cuts in between. Since June 28, petrol price in Delhi has risen by Rs 5.42 per litre to Rs 68.88 per litre today (Thursday, 24 August, 2017).

Where is all that money going? Well, the rising crude oil price is surely one factor. The price of the Indian basket of crude oil has risen by over 11% from $45.42 per barrel as on 27 June to $50.51 per barrel as on 23 August. The corresponding rise in the petrol price has been over 8.5%. But as FE Online wrote earlier, crude oil price is not the only factor affecting the retail fuel prices. Read here what all goes into pricing the increase or decrease in the petrol and diesel prices.

And while some might take comfort in the fact that the hike in petrol price is in line with the prices of crude oil, it might be important to note here that petrol cost lesser than this when the crude oil price was at over $140 per barrel. This begs the question of where is that additional money going? Of course, a big part — more than half of the price that you pay for petrol and diesel — consists of various centre and state taxes, which remain there even after the implementation of GST, as the two commodities were kept out of the ambit of the most radical tax reform that India has ever seen since independence.

  1. V
    Vladislav Yakov
    Oct 19, 2017 at 12:31 am
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    Reply
    1. Dr T V Gopalakrishnan
      Aug 25, 2017 at 8:56 am
      This governemnt is after squeezing the masses. The price increases are being felt and noticed. But they are helpless. Perhaps, the impact can be seen in the next election. to some extent.
      Reply
      1. Alok Dube
        Aug 24, 2017 at 11:20 pm
        Who hasn't noticed it... It's just that it was 76 a while back, 2-3 months ago.
        Reply
        1. R
          R Kumar
          Aug 24, 2017 at 11:16 pm
          Some body promised to give 15 lakhs we voted for him now booted every where all where Acha din hai
          Reply
          1. R
            Raees
            Aug 24, 2017 at 11:13 pm
            BJP bhagao, aam Aadmi bachao.
            Reply
            1. S
              Shantibala
              Aug 24, 2017 at 9:37 pm
              This was a ploy to benefit the oil companies and Government alike to get taxes in huge margins specially in Delhi where AAP government is getting huge taxes. GST is also still out of the ambit to benefit the Government in earning from petrol and diesel dynamic pricing. Government should bring transparency in the taxation and reduce the taxes.
              Reply
              1. K
                Koushik
                Aug 24, 2017 at 8:33 pm
                One Country One Tax except petrol, wine so that they can squeeze money from public.We are equal in democracy but some of us are more equal! Reservations are there for the post of government services,educational ins ute etc.but why the post of minister,chief minister,prime minister,president are not reserved?We the public is responsible for this situation because we forget to poll our vote at NOTA !!
                Reply
                1. J
                  jimmy
                  Aug 24, 2017 at 11:46 pm
                  For every single reason dont blame reservation most of the general cast people looted trible people and deprived them from development what they are taking is just one nt of what they loose at that time but general and minority people always weeping on the name of reservation they are taking 50 seats in all goverment organization but steel they are hungry for more most IAS officer ,PSU cmd and minister are from general who are to the core corrupted and deprived people from their rights shamless most general student who read in goverment college and taking scholarship later working for US or UK is they doing charity for society it is very much clear if one tribal state like jharkhand in which one coal (dhanbad jhariya)mine produces 60 of coal for electricity production if seprated then india will be on toe there are many other tribal state like chatisgarh and odisha rich in iron ore but there people is poor due to loot of general cast as like vijay mallya
                  Reply
                2. P
                  Pankaj
                  Aug 24, 2017 at 4:10 pm
                  Daily change in prices, charts, historical data of Petrol Diesel of state capitals s: numberbasket /india/petrol-price/delhi/newdelhi
                  Reply
                  1. B
                    Bindu Khanna
                    Aug 24, 2017 at 3:11 pm
                    De Do - Saare paise modi ji ko de do. Modi ji is master in extracting money from the public.
                    Reply
                    1. A
                      Antony Kuriakose
                      Aug 24, 2017 at 3:10 pm
                      Consumers in India desperately meet electric cars!
                      Reply
                      1. pradip kumar Ghosh
                        Aug 24, 2017 at 1:31 pm
                        There is this experiment that if a frog is put in water in a kettle and the water is heated very slowly, it remains in water withstanding increasing temperature and at one point of time, it dies due to high temp rather than jumping out. But if a frog is put in a hot water suddenly, it will instantly jump out. Mr Modi appears to have been told of this experiment by an advisor. Common people would react to sudden hike and raise hue cry, now the same people are not reacting that way at all due to incremental hike being effected on daily basis. The day is not far when common people will realise that they are going to die financially unless they hit back at the Government. This Govt is looting people
                        Reply
                        1. Ramesh B Bhatia
                          Aug 24, 2017 at 1:29 pm
                          Price rise is not felt bcos most of 2 Whlr and E-Riksha are battery operated which doesn't require petrol or diesel. Transporters silently add the price increase in rates. Private Car owner's have no time to raise the issue as it does not bite their pocket (less users) .
                          Reply
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