April , 2021
Where to draw the line?
11:58 am



They so wished it to happen soon enough. After the dual strike of demonetisation and nationwide lockdown, they wanted price rise - both in wholesale and retail market, to be contained urgently. But exactly the opposite happened in market that resulted to untold misery of the Indian citizens.

Unchecked price hike in all sorts of fuels made it worse. It is even more bothersome that nobody seems even close to take care of the incredible burden put on the people of our country. Or even consider the fact what they have been through in recent times. Moot questions are being asked that where and when to draw the line?

It may seem that there is no line at all, or drawing it is about the hardest thing a government has ever had to do. Indian citizens are in no mood to subscribe any official justification whatsoever. They are quite disgusted with the timeless tales (of price hike in the global market et. all), perfectly adapted to the governance.

Fuel rates have been skyrocketing in India over the last days, amid rising crude oil rates in international markets over lower production in Organisation of the Petroleum Exporting Countries (OPEC). While fuel rates are easing in India, the central government has refused to lower the excise duty to reduce the burden of end customers, citing the amount collected from taxes is used to generate more jobs in the country.

The Centre has increased its investment and 34% more capital spending would be done. State governments will also increase spending. That is why we need this tax but there is also a need for balance. Though the Centre has refused to cut down taxes four states namely - West Bengal, Rajasthan, Assam and Meghalaya have reduced VAT to give at least a breather to the end consumers.

Prime Minister (PM) Narendra Modi held previous governments responsible for not reducing India's import dependence. He said the middle-class would not have been burdened if the previous governments had worked to reduce the country's energy import dependence.

PM Modi, without mentioning the constantly increasing retail fuel prices which are linked to international rates, said India imported over 85% of its oil needs in the 2019-20 financial year and nearly 53% of its gas requirement.

While the Centre has refused to cut VAT on fuel prices, Union Petroleum and Natural Gas and Steel Minister termed less fuel production by manufacturing countries to gain more profit as one of the reasons behind the price hike.

He said, “There are two main reasons behind the fuel price rise. The international market has reduced fuel production and the manufacturing countries are producing less fuel to gain more profit. This is making the consumer countries suffer.” Yet, the question remains same - where and when to draw the line of price hike?


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