Rise In Fuel Prices

In today’s scenario tending debate is hike in fuel prices. Fuel has become a very basic commodity of everyone’s life, though there is raise in price, consumption of fuel has not decreased to that extent. Petrol price a decade ago was Rs.45 which has increased to 83 there are multiple factors effecting the hike in price like; fall in currency value, high demand, government policies and so on.

 As India being fourth largest consumer of fuel, raise in fuel price has affected India as a whole. India does not have enough of oil to meet the growing demand of oil. Near about 1.4 million barrels of diesels are used per day in India especially by farmers, trucks and industry. So, to meet the growing demand, most of the oil is imported from other countries resulting more expenditure. It has been seen that petrol price has increased about 10 times within the period of three years and still rising. Ultimate result of price hike of petrol is inflation. The second major reason would be depreciating in the value of Indian currency, the condition of Indian currency is also not favorable at present. India is going through currency crisis where value of Indian Rupee is falling to US Dollar. That is why Oil Marketing Companies like Indian Oil Corporation, Bharat Petroleum are paying more for the same quantity of crude oil. Due to this, Oil Marketing Companies have lost near about 4,300 crores in the past six months for selling petrol at low cost. On the other hand, price rise of petrol can be controlled if the government reduces its revenue from the taxes on petroleum. 35% of government’s income is generated through petroleum taxes.

With increase in price day by day one must look for alternate methods to reduce the usage of fuel, few of them are :

·    1.Use Eco friendly transportation like bicycles, electric vehicles.

·    2.Take public transport like government buses or metros.

·    3. Avoid using vehicles for short distances.

·    4.Make a habit to turn of the vehicle at signals.