fuel prices

India’s three state-owned oil firms which supply 90% of the country’s fuel suffered a record Rs 18,000 crore loss in the first quarter of 2022. The loss was in view of not raising prices till UP election results in March, despite crude rates increasing globally.  However, by defying western pressure to import Russian oil at discounted rates since February 2022, India has already saved Rs 35,000 crores.
 

Tamil Nadu BJP president K Annamalai has been booked for leading a protest which witnessed a footfall of 5,000, demanding the state government to reduce the petrol and diesel prices, on May 31. Annamalai stated that the central government has reduced the fuel prices and asked the state governments to do the same. He alleged that DMK promised to reduce fuel prices in their manifesto.

In cities like Delhi, Mumbai, Hyderabad, and Kolkata, the fares of Ola, Uber, and private taxis will be increased. The decision was in view of the rising fuel prices which have crossed the Rs 100 mark in the aforementioned cities. Head of Operations, Uber, Nitish Bhushan said, in Kolkata, Delhi-NCR fares are up by 12%, and in Mumbai, Hyderabad they increased 15%. Besides, Ola also announced hike in prices. 

The Delhi Government reduced VAT from 30% (Rs 23.99) to 19.4 % (Rs 15.25 ), resulting reduction in petrol prices. The step was a relief to Delhi citizens, who will get 1 litre petrol for Rs 95.50 from the previous Rs 103.97, reduced by Rs 8. Reportedly, fuels prices may go down further as the international crude prices have been reduced by over 10% in the last few days. 

Amid soaring fuel prices, the Centre’s tax collection on petrol and diesel has witnessed a 459% surge in the past seven years. Replying to a question in the Lok Sabha, the Oil minister Dharmendra Pradhan on March 8 stated that the prices of LPG cylinders doubled from Rs 410.5 (2014) to Rs 819 in 2021. Moreover, the prices of kerosene, distributed through the Public Distribution System, also rose from Rs 14.96 to Rs 35.35.