The Minister for Petroleum and Natural Gas,Murli Deora has informed that petrol prices have been hiked by Rs 2 and diesel prices have been raised by Rs 1 with effect from midnight today. Commenting on the fuel price hike, Prime Minister Manmohan Singh said it is a marginal increase. "We need to look at the country's interest. The fiscal system will collapse if not made sensitive to rising international oil prices. India also needs to consider the additional burden on the import front."The hike in petrol prices will help oil marketing companies (OMC’s) cut losses.
Have you ever wondered why fuel costs more in India when compared to countries like Pakistan, Bangladesh, Thailand, Sri Lanka etc? It’s because the Indian govt imposes more than 50% tax on petroleum products. Petrol in India should cost about Rs 25 a liter without the duties levied by the centre and state governments.
The heavy tax has resulted in people suffering because of exorbitant prices, and oil giants are beginning to incur losses as well. The government should take immediate steps to reduce the prevailing high taxes on petroleum products so as to ease the burden of a common man. If the petroleum prices are increased it would further escalate inflation, which is already unbearable for the people.
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