Before 2014, the then Chief Minister of Gujrat Narendra Modi has criticized Congress Government for rising fuel prices but today it is the same case with Modi Government in center which is ignoring the rising fuel prices. In some of the parts of India, the Petrol price is near to Rs 100 per Litre and Diesel is near to Rs 90 per Litre.
Now let me clear one thing here, I will not be attacking Modi in this article like left media for rising fuel prices. Actually, this is something that majority of governments around world practice for increasing their revenue.
In March 2020 India-third largest consumer of Oil in the world went into total lockdown after China which is second largest consumer of crude oil. This has adversely affected oil producing countries economy such as Saudi Arabia that 1 barrel of crude oil reached $13 in April.
However, the world again started moving towards normal situation in the beginning of November with major economies started functioning again. The demand for crude oil once again increased and price per barrel reached $40.
Fast forward to February, the crude oil per barrel is $60 when compared to last year February which was $53. That means only 13% price has increased after post pandemic. But now the larger question here then why crude oil price is rising in India and why government is not concerned?
The reason is very simple- Due to Pandemic Government has lost nearly Rs 29.87 Lakh Crore (15% of National GDP). In recent Union budget of 2020-21 everyone expected Central Government would impose tax on Middle Class to generate revenue but it turns out that Government didn’t impose tax. As of now Government is in need for money and that money is now being generated from tax on Petrol and Diesel. The Indian Government cannot afford to tax cooperate and distribute the wealth among Poor people like typical Socialist Governments which will make them leave country and generating less jobs.
Comin back to our point, one of the common action practiced by Governments around world to fill their pockets in most safe way is oil price decontrol. When Global oil prices go up the burden is passed on to the consumer but when the reverse happen and prices go down Government slaps fresh tax to ensure that it makes good revenue. That is why the Indian Government today is least concerned about rising oil prices.
