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Why is Modi govt increasing domestic prices when international crude oil prices have fallen sharply?

Sabrangindia 15 Mar 2020

petrol

Strangely, while international crude oil prices are falling sharply, the Narendra Modi government, as is its wont, has increased the excise duty on

petrol and diesel. This is another aassault on people already suffering under economic recession.

The special excise duty on petrol has been hiked by Rs 2 to Rs 8 per litre in case of petrol and to Rs 4 in case of diesel. For every litre of petrol

the excise duty is Rs. 22.98 and on diesel it is 18.83. Simultaneously, the road cess on petrol has also been raised by Rs 1 per litre each on petrol
and diesel to Rs 10.

While dismantling the Administered Pricing Mechanism, the country was told
that the benefits of a fall in crude prices would be passed on theconsumers. On the contrary, since the BJP assumed office in 2014, duties on
petrol have increased by 142 per cent and on diesel by a whopping 429 per cent.

Confronted with a recession in the economy which has been compounded by the huge health concern that the Corona pandemic has created, it would have been in the fitness of things if the benefit of the fall in prices were passed on to the already overburdened consumer.  This, however cannot be expected from a government which is oblivious to the concerns of the common man and is

more concerned in promoting the interests of corporates and its cronies.

Apart from others,  the CPI(M) has called for the withdrawal of this criminal hike in excise duty of petrol and diesel. Retail prices must be lowered to levels corresponding to the fall in the international prices, i.e. by 30 per cent.

Why is Modi govt increasing domestic prices when international crude oil prices have fallen sharply?

petrol

Strangely, while international crude oil prices are falling sharply, the Narendra Modi government, as is its wont, has increased the excise duty on

petrol and diesel. This is another aassault on people already suffering under economic recession.

The special excise duty on petrol has been hiked by Rs 2 to Rs 8 per litre in case of petrol and to Rs 4 in case of diesel. For every litre of petrol

the excise duty is Rs. 22.98 and on diesel it is 18.83. Simultaneously, the road cess on petrol has also been raised by Rs 1 per litre each on petrol
and diesel to Rs 10.

While dismantling the Administered Pricing Mechanism, the country was told
that the benefits of a fall in crude prices would be passed on theconsumers. On the contrary, since the BJP assumed office in 2014, duties on
petrol have increased by 142 per cent and on diesel by a whopping 429 per cent.

Confronted with a recession in the economy which has been compounded by the huge health concern that the Corona pandemic has created, it would have been in the fitness of things if the benefit of the fall in prices were passed on to the already overburdened consumer.  This, however cannot be expected from a government which is oblivious to the concerns of the common man and is

more concerned in promoting the interests of corporates and its cronies.

Apart from others,  the CPI(M) has called for the withdrawal of this criminal hike in excise duty of petrol and diesel. Retail prices must be lowered to levels corresponding to the fall in the international prices, i.e. by 30 per cent.

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