Fuel price hike upsets Covid-hit home budget

Fuel price hike upsets Covid-hit home budget

President of M P Petrol Pump Owners’ Association, Ajay Singh, told TOI said that since the lockdown, the prices of both petrol and diesel were constant till unlock-1 was announced and since June 6, prices of both the commodities are rising again

Bhopal: After remaining stable for over two months since the lockdown was effected in the country on March 24, the prices of petrol and diesel have started rising again.

Since June 6, the price of petrol has gone up by Rs2.84 while diesel price rose by Rs2.14 per litre.

“When the prices of oil in international market were at the lowest, the government did not allow its prices to come down by levying extra excise duty. Now that crude oil in the international.market has risen a bit, oil companies didn’t lose any time to raise the prices. The prices of petrol and diesel are rising every day over a week,” said Varinder Singh, who was refuelling his bike at a petrol pump in New Market.

The government seems to have decided that petrol prices won’t be allowed to go below Rs75 per litre, he added.

“At a time when government itself was asking people not to.ask for rent from their tenants and has suspended payment of instalments on realising that people are in financial crisis due to the coronavirus pandemic, it should also spare petrol and diesel prices from hike. It is now clear that decontrolling the prices of petrol.and diesel and letting the international market decide its prices, which was one of the first steps of Modi government, was a ‘farce’. The prices of petrol.and diesel are still controlled by the government,” said Prerna Sharma, teacher at a higher secondary school.

President of M P Petrol Pump Owners’ Association, Ajay Singh, told TOI said that since the lockdown, the prices of both petrol and diesel were constant till unlock-1 was announced and since June 6, prices of both the commodities are rising again.

He said that crude oil in the international.market had come down to as low as Rs18 a barrel, but then the government didn’t pass on the benefit to the consumer. Now, oil.companies are raising prices even though the crude price is still Rs42 per barrel.

“The Union government would have been forced to impose Corona tax in the situation it was in, but low oil.prices came in handy for it to mobilise funds. But, its objective was not fully achieved as oil consumption in the country reduced to 25 to 30 per cent during the lockdown. Now, oil consumption is picking up again during the “unlocking” and prices of petrol and diesel are also rising.

He further said that by Saturday, the price of petrol would have risen by Rs5 per litre from what it was on June 5.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/fuel-price-hike-upsets-covid-hit-home-budget/76331932

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