Petrol and Diesel – 2 most used petroleum products in India were experiencing a high-rise in past in 2 years of Modi government. The government decided to bring down Petrol Price after recent protests on the issue. Government is achieving this drop in rate by deducting the product fee on these products. The change in price has been set to occur since Tuesday night. The buyers are expected to experience more than 2 rupees relief in petrol price across the nation.
It is just a small relief as compared to hike in past 2 years
The relief on the price of petrol looks tiny when seen on large scale. The Modi government came into action in the year 2014 with a promise of bringing down petroleum prices. After an initial drop in the rates, it started to rise again. The gradual increment in past 2 years sums up to be around 12 rupees in total. A petrol price drop of 2 rupees as compared to 12 looks too small to count as an achievement. Finance Ministry is constantly complaining about rising in the international market for the price of crude oil.
Change daily price of petrol Plan
Petrol prices have always been an issue since vehicles came within easy reach of aam aadmi. The general public in India burns a lot of petrol and diesel daily. Thus, a change in the price of petrol affects almost each citizen directly or indirectly. Central Government of India recently introduced a plan about changing the daily price of petrol in selected cities of the nation. This plan was started as a pilot project and after its initial success, the government imposed it on many other cities too.
This daily shift of rates in petrol prices worked as a hidden price hike system for the products. The slow but gradual increment in prices leads to a big increment in petrol price within recent months. A lot of protests and march have been recently carried out in the whole nation against the increment of petrol and diesel prices.
Government blaming Internation Crude Oil Market
The recent press releases and statements of various officials and government issue reports indicate that the rise in crude oil prices in the international market is the main reason behind price hike of petroleum products in India. Central officials decided to counter this hike by dropping product fee. Product fee drop will also effect VAT. Thus a buyer will receive more than 2 rupees off on petrol price.
The Central Board of Excise and Customs (CBEC) reported that this drop will affect government reserves. This relief in the price for diesel and petrol rates will put an additional burden on reserves.