Fuel prices regulated by election dates and not global rates, alleges Congress

"The prices of crude oil have been consistently on a downward spiral for the last few months and are at a seven-month low. But the prices of petrol and diesel in our country don’t seem to reflect this trend, even after deregulation, which means that the prices of petrol and diesel should change as per global prices,” Congress spokesperson Gaurav Vallabh said.

New Delhi: Hitting out at the BJP government once again on the issue of fuel prices, Congress spokesperson Gaurav Vallabh on Sunday said that prices of fuel are not being regulated by global markets prices, but it was rather being managed as per election dates. “The consistently high retail inflation is one of the most concerning areas that need immediate government intervention. Retail inflation has been above RBI’s upper band of six per cent for the last seven months. Commodities such as food, vegetables and fuel hurt the middle and lower-income groups most.

The government has been primarily the most inconsiderate towards the fuel prices. Since they have a cascading effect across all economic activities, the government’s inactions speak of its cluelessness and misguided focus” he said. “The prices of crude oil have been consistently on a downward spiral for the last few months and are at a seven-month low. But the prices of petrol and diesel in our country don’t seem to reflect this trend, even after deregulation, which means that the prices of petrol and diesel should change as per global prices,” he added.

As per the Petroleum Planning & Analysis Cell (PPAC, Government of India), Crude Oil Indian Basket as of September 8 was USD 88.00 per bbl. The government revised the petrol and diesel prices in May 2022. On May 21, 2022, the government announced a cut in excise duty on petrol and diesel by Rs 8 and Rs 6 per litre, respectively, leading to a reduction of petrol rates by Rs 9.5 per litre and diesel by Rs 7 per litre.

After elections in Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur, the petrol and diesel prices were increased 9 times in 10 days between March 20 and 31. “Crude oil prices have fallen by 24% in the last four months, but the common man has received no relief from the government, even with retail inflation consistently over RBI’s upper band of 6%.

Fifty to fifty-five per cent composition of the overall price being paid by the consumers for petrol and diesel is contributed by the crude oil prices. One should keep in mind that in May 2014, crude oil prices per bbl were USD 106.49 and petrol was at Rs 71 per litre and diesel was at Rs 55 per litre (During the UPA government). Even the LPG rates ($/metric tonnes) have dropped significantly over the last few months, but the consumers have seen no relief,” said the Congress spokesperson.

The Congress party has demanded a Rs 15 per litre reduction in petrol and diesel prices and a reduction of at least Rs 150 per gas cylinder. “When the crude oil prices are at a seven-month low and inflation above RBI’s upper band of six per cent per cent for the last seven months, why are the consumers having to bear the brunt of high fuel prices? Why is the relief not being passed on to the consumers when the burden of high crude prices is always passed on?” Questioned Gaurav Vallabh. The party has consistently been raising the issue of inflation and rising fuel and other essential commodities prices. The mega rally in the national capital last week also focused on price rise and unemployment.