Prices of petrol and diesel have been increasing continuously for 18 days and it was drawing attention but what alarmed more was diesel’s price.
In Delhi and its nearby areas, diesel is now about 12 paise costlier than petrol. Why did this happen?
The biggest reason for this is the unevenness of the tax. Petrol is still expensive than diesel in the country but due to a higher toll on diesel in Delhi, the price has outpaced petrol. For now, we should endeavour so that the difference between petrol and diesel remains unchanged. We need to think back to the time when the price between diesel and petrol used to have a marginal gap between 20 to 30 rupees. The difference was because the use of diesel usually occurs in heavy vehicles for irrigation, riding or freight. The prices of diesel were handled by the governments because the price of diesel and the upshot of its hike was on the farmers and inflation. It is favourable for the economy to keep the gap between these two fuels.
It should be noted that private passenger vehicles that run on diesel also cost more than petrol vehicles, owing to the same reason the similarity between petrol and diesel’s price is even against our own vehicle policy.
By keeping the prices high in Delhi, customers can turn to states like Uttar Pradesh. In that case, Delhi itself will have to uplift the loss of revenue. Delhi and it’s neighbouring U.P has the difference by rupees 8.
So the effort should be to create a logical difference between the prices of petrol and diesel. It is also to be seen that there should not be much difference in the state-wise prices.
Seeing India as a whole economic unit is needed. In industrial sectors, even the difference between 10 and 20 paise counts. So the difference in state-wise prices should not exceed 50p or 1 rupee.
People do not understand the tax planning of governments but they definitely get upset to see that in Delhi if it is 79.76 rupees, so how is it for rupees 86.54 per litre in Mumbai?
The government should also notice oil companies. After keeping the prices stable for up to 82 days these companies are increasing the prices continuously from June 7, and there is a possibility of a hike in the coming days as well. International oil prices have already begun to rise.
It should be taken into consideration that in just 18 days, increment in the price which is approx rupees 10 is not good for the economy, hoping for improvement. The subsidy which is being given to the industrial world in this crucial time, it may so not happen that a large amount of economic support through petrol and diesel, gets snatched away from people.
At this time revenue is necessary for the government but that should be logical. Oil companies have been given the power to decide the price according to the cost but the increment should not happen in such a manner that everyday budget starts deteriorating.
It is important to take care of that selling oil for profit is not their only job, they will also have to think about the stability and strength of the economy of our country.