1. Two weeks after oil minister said petrol price would ease out, has it really fallen?

Two weeks after oil minister said petrol price would ease out, has it really fallen?

The international retail fuel markets seem to have a mind of their own, as far from falling, petrol price have actually risen further over the last two weeks, when minister Dharmendra Pradhan said it will fall in the coming days. But why might have the consumers not noticed.

By: | Published: September 30, 2017 1:28 PM
A worker counts Indian currency at a petrol pump in the northeastern Indian city of Siliguri February 5, 2008. India is set to raise retail petrol and diesel prices this week for the first time in 20 months, a senior oil ministry source said, as the government risks political capital to ease losses at state oil refiners. REUTERS/Rupak De Chowdhuri (INDIA)

A little over two weeks ago, Minister for Petroleum and Natural Gas Dharmendra Pradhan had said that the retail fuel prices would ease out in few days, ostensibly to calm the nerves of the public reeling under the double whammy of costlier food, and prices of petrol and diesel which were hovering at about three-year highs. Despite the growing clamour for government intervention to bring down fuel prices, the minister had categorically refused to interfere in day-to-day functioning of oil marketing companies.

The sudden rise in the retail fuel prices was seen due the impact of hurricanes Harvey and Irma on the international fuel markets, Dharmendra Pradhan had said then, adding, that an analysis of the global trends indicated that petrol and diesel prices would likely ease out in the days to come. However, it seems like the international retail fuel markets have a mind of their own, as far from falling, petrol prices have actually risen further since then. Once again, consumers might not have not noticed it because of the small doses of daily increase.

Since September 13, petrol price in Delhi has risen by 28 paise per litre, and is at Rs 70.66 per litre in the capital as of today, September 30, 2017. As for the price of diesel though, the rise has been far moderate at just 14 paise per litre; it’s a rise nevertheless, not fall. Diesel is being sold in Delhi at Rs 58.86 per litre today. The price of petrol in Mumbai at Rs 79.77 per litre today is near the levels last seen in August 2014 in the country’s financial capital. Similarly, the price of diesel is at three-year highs in the metro cities of Kolkata and Chennai at Rs 61.52 and Rs 62.00 per litre respectively.

Retail fuel prices in India have gradually aligned with the global crude oil prices and international retail fuel markets since the government freed up petrol pricing from its control seven years ago. The price of petrol was under the government control when the crude oil was at its peak. Biting the bullet, the government deregulated the price of the fuel from its control in 2010, allowing the oil refining and marketing companies to set it in line with the market dynamics, specially crude oil prices. Then, earlier this year, the government introduced dynamic fuel pricing on June 16 — a mechanism for revising retail fuel prices daily across the nation in conjunction with the change in the crude oil prices.

Oil minister Dharmendra Pradhan said earlier this month that the deregulation of retail fuel prices — beginning with petrol in 2010 and diesel in 2014 — and then the shift to daily revision in June 2017, is a consumer-friendly approach, and in their best interests.

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  1. D
    Devesh
    Oct 2, 2017 at 12:24 pm
    The only way to bring inflation down slightly is to impose GST globally across all the products specially Petrol,reals state, liquors and tobacco products. And as the law of demand and supply it is definitely not gonna decrease in revenue at all because purchasing power will be increased and more consumption will result in more revenue. Inversely it will impact consumption to a margin for sure but it would be like a fair so called GOVERNANCE for which they asked for vote in 2014.
    Reply
    1. D
      Devesh
      Oct 2, 2017 at 12:20 pm
      Both center and state are not agreed to impose GST on Petrol,reals state, liquors and tobacco products. Why don't centre impose GST on Petrol,reals state, liquors and tobacco products where they have government in centre and state as well. Both centre and state are pushing their balls that it is centre to impost GST and it is state to impose GST on Petrol,reals state, liquors and tobacco products. WHY A SELECTIVE APPROACH HAS BEEN INITIATED AND WHO PLANNED IT. THIS NEED TO BE IDENTIFIED BEFORE CENTER's ELECTIONS.
      Reply
      1. Abdul Khader Saheb
        Oct 1, 2017 at 3:39 pm
        Since BJP has come to power plight of massess increased manifold. Goverment's interested in filling it's coffers only.They want people to go he'll.
        Reply
        1. A
          Ashish Garg
          Oct 1, 2017 at 9:38 am
          All are corrupt Modi ji please give us our bad days back we don’t need ur ache din
          Reply
          1. A
            Ajay
            Oct 1, 2017 at 9:10 am
            If the Modi Government is realy serious in combating inflation it is high time that they rolled back some of the taxes that they had imposed on fuel when the international prices were falling, or else this price rise will be the death knell for the government in the 2019 elections.
            Reply
            1. A
              Ajay
              Oct 1, 2017 at 9:06 am
              It is time that this petroleum minister Dharmender Pradhan came out of his gilded palace and onto the streets to see for himself that the Fuel prices are STILL RISING and NOT FALLING, as he had promised they would 2 weeks ago.
              Reply
              1. S
                SBDas
                Sep 30, 2017 at 9:44 pm
                Modiji your ache din with recent petrol prices biting the middle-class n my intuition is that the valuable middle class may bite your 2019 game changer
                Reply
                1. N
                  Ninad
                  Sep 30, 2017 at 2:27 pm
                  Dharmendra Pradhan and most of the Union Ministers of the ruling party are turning out to be biggest crooks!
                  Reply
                  1. H
                    Hussain Gazanfar
                    Sep 30, 2017 at 2:05 pm
                    Welldone modiji hats off to you please do in favour kindly put the petrol price Rs-150/per litre, we all are glad to vote you again in 2019 general elections.
                    Reply
                    1. D
                      DP
                      Sep 30, 2017 at 1:53 pm
                      Their mouth is full of bakwas.
                      Reply
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