Petrol, diesel price soar amid lower crude cost, Cong raises issue

In January Brent Crude was worth about 63$ per barrel which later decreased to 55$ in February. Currently, it is at 42.76% per barrel. The price decreased has been due to many reasons: initially led by the Russian disagreements over production cuts and later due to the lack of consumption amid the Corona lockdown. This even led to WTI reach negative rates. However, in India, the retail price of petrol and diesel has not seen lowering cost amid the international price falling. Instead, the prices have only increased. The current petrol price in the National Capital is Rs 79.76, in February it was Rs 71.

The scenario is even complicated in Assam. In the last 10 days, diesel prices have increased for diesel from Rs 74.51 to Rs 78.55 and for petrol Rs 81 to alomst Rs 84.

To take stock of the issue, the APCC has staged a protest against the price hike at Rajiv Bhawan, Guwahati. Tarun Gogoi, former CM Assam spoke regarding the issue. He said, "there is a rise in petrol price although the crude cost has decreased. This is a big blow to the common man and the skyrocketing prices are affecting people who are already suffering from the economic fallouts of corona". APCC Chief Ripun Borah also spoke on the issue. He said, "this has never happened in history as the govt is continuously priced for the last 18 days at a time when the people are dying for food".

Also read: Assam: Crime rate falls by 50% in Guwahati amid coronavirus lockdown

Why the price rise?

So far Rs 40,000 crore from excise duty on petrol and diesel in the first two months of the financial year have been collected by the govt. For the month of April, Rs 22.98 excise duty has been levied on petrol. With the price of oil decreasing, more excise duty means more tax collection. As other industries have suffered due to the lack of transaction in corona lockdown, the govt is using the oil to keep the economy stable.

However, this might have consequences in the long turn as people's income further due to the corona, increased prices may slower consumption which will then backfire this strategy.

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