Fuel prices have skyrocketed with petrol costing more that Rs 100 per litre in many districts in Nagaland. Diesel rates has also been hiked and is nearing the Rs 100 mark.
This problem is not unique to Nagaland. The price of petrol has already crossed the Rs 100 per litre mark in 13 states and union territories in India. In fact, buying petrol in major Indian cities such as Mumbai costs almost twice as much as in New York.
Why fuel prices are rising in 2021?
Global Demand: As the world economy recovers from the Covid-19 pandemic, the demand has increased. The price of Brent crude has risen by 47.1 per cent to about $76.2 per barrel from about $51.8 per barrel at the beginning of the year.
High Taxes: High central and state taxes on petrol and diesel are the key reason behind the price of petrol and diesel being at record highs. Even though the price of crude oil is only 11.1 per cent higher than at the beginning of 2020, the price of petrol has risen 32.9 per cent and that of diesel has risen 31.5 per cent during the same period.
What Union Petroleum minister says:
Union Petroleum and Natural Gas Minister Dharmendra Pradhan blamed the recent surge in global crude oil prices for the fuel price hike in India. Mr Pradhan said it is up to the GST Council to decide whether the fuel should be brought under the Goods and Services Tax, which, many believe, would substantially bring down the prices.
Problems rising for the common man:
High petrol and diesel prices have not only impacted vehicle owners, but also people who do not own a car. Rising fuel prices have resulted in a sharp rise in retail inflation, making a host of essential commodities and services costlier for citizens.
A Reuters report had earlier indicated how India’s low income earners — engaged in micro delivery businesses and other activities dependent on fuel — are suffering due to exorbitant petrol and diesel prices. It is equally hurting India’s poor households, who are paying more money for other commodities and services that are indirectly dependent on fuel prices.
(Inputs from various sources)