An Unwanted year

 

A year is generally welcomed with liveliness, but this year is like a Nightmare to millions making their fleshes creep. The rise of petrol in India is an irreversible change, for it only rises and never recedes; and particularly since November last year, the price has constantly been soaring up. With the Price of Petrol at Nanded being ₹ 99.3 and each at Bhopal, Indore and Jabalpur being at ₹ 98.9, the government appears to have been playing a cricket match, trying to hit a century. When the Modi government took the charge, the excise duty on Petrol and Diesel was merely ₹ 9.48 and ₹ 3.56 per litre respectively. The current Excise duty on Petrol is ₹ 32.98 and Diesel is at ₹ 31.83 per litre.   

India has the highest tax on fuel with as high as 260% -270% of the Base price while The US pays as less as 20% as tax.  Price of petrol is going to be a three-digit number before long, creating a psychological pressure. Average price of Crude Oil is approx. ₹ 4598 BBL (per barrel); thus, the average base price of Petrol is merely at ₹ 28.9; e.g., a person purchasing One Litre Petrol at Nanded pays Rs. 70.4 as tax to the government. With a lion’s share of income spent on fuel, the delivery vendors and the outdoor workers earning 12000 – 18000 a month are likely be hit more severely.

with 211.6 Million tonnes of consumption, India is the Third largest Oil Market after China and the US. Sadly, only 35 million Tonne is produced in India and the rest is imported.  During September 2018, International Crude Oil Price was as high as $ 78. 89 BBL, yet the Indian price was as low as ₹ 82 per litre; whereas at present with international price at as low as $ 61 BBL, the price in India is kissing the sky. 

The Oil Reserve of Saudi Arabia are the 2nd largest in the world and accounts for 1/5th of the World’s Consumption. In January 2021, they announced to reduce their Oil Production by 1 Million Barrel a day thus, eventually raising the Price of Oil Internationally. 

 The COVID-19 Pandemic has severely affected all the economies of the world; India, not being an exception has been reduced to skeletons in terms of revenue. In order to save the economy from crashing, the government saw Fuel as the chief redeemer. 

Last year, when there was an 82-day hiatus in the Oil Market (between mid-March to May 25), the price of Crude Oil was as low as $ 20 BBL, yet the petrol in Indian Market was never Dull, In Mumbai for e.g., Petrol was at Rs 76.31 during the First week of April. Had India a proper Storage, it could have grabbed the opportunity by storing more and more oil in its reserves during the hiatus. 

India should be ready – in case another Pandemic hits the World. We should be ready with more storage capacity and more substitutes, more innovation, which is less pollutive by nature and easily accessible. Nothing in this world can have one Fixed price, yet we can at least try to confine them to limits.