The price of gasoline has increased and how. But contrary to the above, this time there was no noise in the price increase of a traditionally politically sensitive article, in which even a small rise would involve strikes and street demonstrations in the good old days.
Many of you may be surprised to discover that the price of gasoline has increased by 5.77 liters per liter in less than two months, and hardly anyone’s attention.
The reason: the dynamic price of fuel – a mechanism launched on June 16 for the daily review of retail fuel prices in relation to changes in crude oil prices.
The new Narendra Modi-OK management program, which is not as new as it has been practiced in many other parts of the world, has allowed customers, and more importantly, oil not to feel pressure to maintain the price of the static fuel for up to 15 days, even if the oil starts to rise rapidly, just like the previous practice.
Immediate price reductions were followed. Gasoline prices fell 3.45 Rs per liter over a 13-day period, with oil companies lowering prices or keeping them unchanged for 12 consecutive days. Then it started to increase, starting with a humble 1 paisa per liter of walking on 28-29 June – an amount that is not worth the effort of hitting an eyelid.
Gasoline prices have since risen, with oil companies continuously increasing small daily doses, with the exception of a few small cuts in between. Since June 28, the price of gasoline in Delhi has increased from Rs. 5.42 per liter at Rs. 68.88 per liter today (Thursday, August 24, 2017).
Where is the money? Well, the rising price of crude is undoubtedly a factor. The price of India’s crude oil basket rose more than 11 percent from $ 45.42 a barrel to June 27 to $ 50.51 a barrel as of Aug. 23. The corresponding increase in gasoline prices exceeded 8.5%.
But as FE Online previously wrote, the price of oil is not the only factor affecting retail fuel prices. Read here what all implies evaluating the increase or decrease in the price of diesel and diesel.
And while there may be some comfort in the fact that higher gas prices are in line with crude prices, it may be important to keep in mind that gasoline was less expensive than when the price of crude oil was higher than $ 140 per barrel.
This involves the question of where is the extra money? Of course, many of them – more than half the price they pay for gasoline and diesel – consist of a variety of central and state taxes that remain there even after the GST implementation because both products have remained out of reach of the most radical tax reform India has seen since independence …