When crude oil prices go up, companies increase petrol and diesel prices overnight, but in less than five percent of crude oil in about 24 days, companies have not changed their petrol and diesel prices. Because of this, government coffers are being filled by companies. At the same time, ordinary people’s pockets are getting lighter.
The last increase in petrol prices was on July 15. Since then, crude oil prices have fallen from $ 74.33 per barrel to $ 69.72 per barrel. Despite the drop in crude oil prices, the companies have so far saved more than Rs 35,000 crore as petrol and diesel have not been cheaper. Experts say that this is why the burden of inflation is increasing on the general public.
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Why are companies not lowering prices
Although crude oil is cheaper, companies say they are filling their losses without lowering petroleum prices. He argues that while crude oil is expensive, petrol and diesel prices have not been increased in that ratio. At the same time, the government argues that in the era of expensive crude oil, the subsidy of Rs 1.3 trillion was being compensated.
Oil game
- After July 15, crude oil was $ 4.61 cheaper
- Petrol prices were last raised on July 15
- When crude oil is one dollar cheaper, it will save the companies about Rs 8,000 crore
- The government has increased the tax on petrol and diesel by Rs 1 crore to Rs 13,000 crore
- On July 15, crude oil was $ 74.33 per barrel
- On August 10, crude oil was $ 69.72 per barrel
- In the fiscal year 2020-21, the government has raised Rs 3.39 lakh crore from taxes on petroleum
- Government tax on petroleum has gained 62 percent more than the fiscal year 2019-20
- Petroleum sales are down by 9 per cent in the financial year 2020-21 due to corona
- 58% tax on the total price of petrol
- 52% tax on diesel
Expensive fuel cooking can ruin a home’s budget
Due to petrol and diesel inflation, consumers have doubled inflation. When petroleum prices go up by 10 per cent, retail inflation rises to around 10 per cent. With the use of diesel in road transport, the cost of goods shipped from it increases, which includes food and everyday items. Due to the cost of petrol and diesel, the cost of travel will also increase.
Inflation is hindered in the way of cheap loans
The Reserve Bank also takes into account the retail inflation rate and determines the policy rates. Inflation has been above five per cent for several months, well above the Reserve Bank’s target of one per cent. In the name of inflation and rise, the RBI has not changed rates in the past several monetary policy. In its monetary review earlier this month, the RBI estimated that inflation based on the CBI (Consumer Price Index) would be 5.7 per cent in 2021-22. This could be 5.9 per cent in the second quarter, 5.3 per cent in the third quarter and 5.8 per cent in the fourth quarter. CPI inflation was estimated at 5.1 percent in the first quarter.
