Why petrol and diesel prices are rising in India?

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India is the world's largest democracy and by many trends is the most emerging market in the world currently, on various parameters. The Indian economy is one of the largest in the world and since it was liberalised in 1991, the country has been at the forefront of global domination in economic and social sectors.

However, in the past few months, a steady rise in petrol and diesel prices have pinched the pocket of the common man and disrupted lives to a great extent. The rise has been very steep and in certain parts of the country, the price of petrol has gone past Rs 90 (Mumbai) a litre and the prices continue to climb which is a big worrying factor as it would trigger a price rise of other commodities.

Comparison of prices of petrol and diesel in major metro cities (July 3, 2018, vs September 26)

The above table clearly indicates that prices of petrol and diesel have skyrocketed and it is been on the rise steadily since July 3, 2018. Prices of petrol and diesel also depend upon the taxes levied by states and petroleum products are still not under the ambit of Goods and Services Tax. Also, global factors such as American President Donald Trump's uneasy and hostile relationship with oil exporting countries as Iran and other middle-eastern countries played its part in the rise in the cost of petroleum. India relies heavily on the import of oil and global disturbances and political tensions are not helping the cause. At the start of the year in January 2018, the price of petrol in Delhi was Rs 72.92 which has now skyrocketed to Rs 82.86 and looks to go up further.

Congress President Rahul Gandhi has been at the forefront of agitation against petrol price hike and has been vociferously raising his voice. The opposition parties blamed the ruling government and protested the fuel price hike with a nationwide 'bandh'.

Union Petroleum Minister Dharmendra Pradhan along with Sumitra Mahajan, Speaker of the Lok Sabha

Union petroleum minister Dharmendra Pradhan has consistently maintained that prices of fuel are beyond the control of government as it is decided by external factors. Another crucial factor has been the depreciation of the rupee, which is currently standing at Rs 72.68 against US Dollar as of today. The need of the hour is to have a concrete plan on fuel policies both for the short and long term and mere rhetoric and blame game by political parties won't help anyone.

Also Read: Petrol Crosses Rs 91/Litre, Diesel At Rs 80 In Maharashtra

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