4 Reasons For Increasing Fuel Prices.Who should we blame for?

Fuels, apart of many other political issues this seems the favorite issue of UPA government to defat NDA in current political game. Since the rates of fuels are hiked up to more than 40% as it was under earlier government. Where earlier the petrol prices were 65 rupees per litre, It has been more than 80 rupees. However prices vary with respect to states. India is fourth largest consumer of energy. Among these entire if we are having so much of energy resources available then what is the reason for this increasing rates of petrol and diesels? Recently we saw an appeal of Bharat Band by Congress with a motto to decrease the rates. But is it fully the government who is making a common man suffers or there are some other reasons too. So who should we blame for? Well some peoples are constantly blaming the government for this, but the real reason is untouched. Here are 5 reasons which are leading to these aggregate prices.

• Increase in prices of Crude oils: Every year about 1575 million barrels of crude oil is imported in India. After US and China, India is the third largest producer of oil. And as the value for dollar has increased, it is prominent that it will witness a rise in fuel prices in India too. According to CARE report, the import bill has increased roughly to $1.6 billion, which is approximately 10,000 crores. So with a lot of calculations, and because the price in International market is same for everyone, the fluctuations in dollar bills are affecting the fuel prices.

• Increase in current Road accident fund: There is a new road accident benefit scheme up by the department of transport that takes 75 percent increment in the ongoing fund of road accidents. This scheme is costing on every litre of fuel. In short you are paying for bills too, issued in public interest. However the cost is less as 1.93 or approximately 2 rupees a litre. It is predicted that this tax can be increased more.

• Increase in petrol consumptions: Today everyone has their private vehicles, and also the public transports have increased, today we do not have to wait for taxis, therefore it is also a factor that is leading to the increase in fuel prices. Nobody wants to share their vehicle or use public transport, which leads to overall intensification in demand than before. The highest consumption was from public transportations that lead to 8 percent growth. Also the diesel vehicles are preferred over the petrol driven vehicles. Accordingly more vehicles on road, more demand.

• The Increase in transport cost and other taxes: There are various and different charges which government follows to. The increase in Basic OMC Cost calculation, Refining processing, Entry Tax Freight cost charges almost 3 rupees per litre. In addition to these many other charges by government such as taxation scenarios had also contributed in the following

Coming to the conclusion yes we can blame the government for some reasons, but we should also not forget, the government is making an effort to clear all the loans of other countries with these money which they collect. After all these the truth is, it is really difficult for a common man to manage all these increasing rates as they are already bearing a common life with minimized salary and huge responsibilities. This diminishes the household income and leads fewer saving and more expenditure.  But the bottom-line is that Central government does not worry about this desolation, they are not worried about to take a hit on revenue but they keep earning with every hike on fuel prices. Or maybe the sleepy government would wake up when it would be few months left for the next election process.