Hike in Diesel and petrol prices
High prices of diesel and petrol have become the talk of the town for the last 2 years. And for all the wrong reasons. Because common people are suffering so they are concerned about the surge in petrol prices. Price rise is not a new concept but the continuous raising the prices can affect a lot of people. Because many services are intertwined with it. Due to the hike in petrol and diesel prices the travel expense increases. Then all the prices of goods are also affected by this. For example, vegetables are brought to a city by a village through trucks. Then trucks will charge high traveling expenses. As a result, vegetable prices also increase.
Many sources in the finance ministry have however inferred that the government isn’t currently considering lowering levies to pre-covid levels. As it has to fund various schemes to cater to the need of our country. It includes the schemes to provide free ration to the poor and the national Covid-19 vaccination program.
High Petrol and diesel prices in 2021
The rising crude oil prices, and the higher taxation impact, have contributed equally to the prices of petrol and diesel. It regularly sets a new record high across the country in 2021. People are trying to figure out what to do. As it affects everybody. The price of petrol in the national capital is Rs 106.9 per liter up Rs 5.7 per liter in the past month. While the price of diesel is at Rs 95.6 per liter up to Rs 7 per liter over the same period. The continual growth in prices also deters the daily life or pockets of common people.
But it is a need because if you travel by your vehicle then you need petrol or diesel.
Finally, India has seen a faster recovery in the consumption of petrol. But the consumption of diesel is low. After pandemic-related restrictions with petrol consumption up, 9 percent in September compared to the year-ago period but diesel consumption remaining 6.5
percent below 2020 levels. Diesel accounts for about 38 percent of petroleum product consumption in India. In addition, it is a key fuel used in industry and agriculture.
Analytic Report on High price of Petrol
According to an analytic report that demand for diesel in India was expected to go up in the next few months with the upcoming festive season. Which has set to accelerate the economic recovery and push up diesel consumption. Analytics showed and predict that India’s total demand for crude oil would only surpass pre-pandemic levels in 2022.
Impact of India’s pitch with oil exporters to lower price
The government says that it has been reaching out to key oil-producing countries. And asking them to expand the production of crude oil. Our Petroleum minister is Hardeep Singh Puri. He has said that the main reason for high international crude oil prices is that “the supply of crude was being kept below demand”
And as a result that this “is designed as a recipe for high prices.” He also reiterated that India has been long pushing for Middle Eastern countries to remove the “Asian premium”. Because even after a 40% cut in barrel prices it is still more than they offer to US and European countries. So, he said that they are arguing with them to provide more discounts. Or just remove the Asian Premium.
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