Thursday saw an increase of 30 paise in the price of petrol in Delhi. Central government puts additional tax of Rs10 on every litre of petrol.
Petrol and diesel prices have witnessed a sharp rise in the last ten days.
Petrol and diesel prices across the country continued to climb by the range of 19-31 paise per litre, marking the 11 straight day of hikes in the fuel prices. For this reason, these days when we pay Rs 80 for a litre of petrol out of it Rs 35-40 is going to the governments i.e. state and union.
"It is also likely to have a negative effect on consumer spending as putting fuel in the vehicle to get to work takes priority over shopping and eating out".
Higher prices are denting popularity of the ruling Bharatiya Janata Party, which face polls in key states later this year and a nationwide election in early 2019. The fuel price hike has led to demands from several commercial and civil sectors to bring down the prices with immediate effect. The Central government levies ₹19.48 excise duty on a litre of petrol and ₹15.33 on diesel. The kerosene price is revised every fortnight by few chheltrums, according to an employee with Bhutan Oil Distributor.More news: United States federal court says 'NO' to President Donald Trump
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There seems to be no respite from the boiling fuel prices in the country. "The Prime Minister is taking the matter seriously", the MoS Finance said. Just as the Goods and Services Tax (GST) has improved the efficiency of the transport sector, similarly such a measure would help fuel, he added.
"The Indian government will take the common man into consideration and come up with short-term and long-term solutions", he said.
A milkman in Mumbai, Pandurang Vishe, who used to travel daily on his bike for 7 kms to distribute milk by his bike, has now switched to a horse for distributing milk due to the rising fuel prices. Chidambaram had in a series of tweets said that the fall in global oil prices between 2014 and early 2016 helped the government save Rs 15 per litre but the government put an additional Rs 10 on every litre of fuel.
This makes Modi's task all the more complicated, challenging and politically more risky. The Modi dispensation has to act fast. Failure to do so will severely dent Modi's Mission 2019.