The rise in petrol and diesel prices and also rise in food prices has been making news for the last week. The money in the pocket of the common man is not going far as it was. When the BJP swept the polls in 2014 and came to power, Prime Minister Narendra Modi had promised this country ache din. 3 years on many of the opposition parties’ questions that promise that was made to the people from acute job crisis to fuel price hike, from rising inflation to distressed farmers.
Since NDA introduced dynamic pricing, petrol price is up by ₹7 and diesel by ₹5. Even it might be going up every week by 10 paise, 20 paise or even by 50 paise, but it’s all adding up. On September 12, petrol cost ₹79.48 per liter in Mumbai and ₹70.38 per liter in Delhi while diesel was priced at ₹62.37 per liter in Mumbai and ₹58.72 per liter in Delhi. Wholesale inflation rate saw a steep rise of 70% from July to August. Food inflation was driven by rising price trends of onion at 88.46%, vegetables at 44.915, fruits at 7.35% and milk at 3.94%. Prices of potato declined 43.8% in August.
It is a common fact that the price of fuel in India depends upon the global crude oil prices. Any disturbances in the same is expected to reflect in the money we pay. On May 26, 2014, when the current government took over, a barrel of crude oil cost ₹ 6330.65 which by September 11, 2017, had almost halved to ₹3368.39.
Here are some reasons why the prices are driven up: –
- Rise in international rates due to hurricane-induced shutdown of refining capacity in the US
- Continuing changes in tax rates on account of Goods and Services Taxes
- Excessive rainfall has affected crop yields
- Inflationary pressures on pulses expected
- 7th Pay commission impact may add to worries
The big questions that arise here are: –
- Is the government making us pay for its expenses on populist sops like farm loan waiver?
2. If we are paying more for veggies, why are farmers getting less for their produce?
3. Shouldn’t the government be passing on the benefits of softening international crude oil prices to the Aam Aadmi?
4. If the opposition is so concerned about rising fuel cost then why don’t they agree to include oil under GST?
The major victim of this price rise is none other than the common man. Even though the government said that this rise is temporary but still when a consumer goes to the market to buy. He double-checks the money in his wallet and how much commodities he can buy with the same.
So what do u think about this price rise? Comment below