RETAIL OIL PRICE DECONTROL IN INDIA CONTINUES TO BE A BIG SHAM
CONSUMERS GET LITTLE BENEFIT OUT OF FALL IN GLOBAL PRICES
2024-09-09 11:37
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The oil price decontrol — at first, the retail prices of petrol by the Manmohan Singh-led government in 2010 and, thereafter, diesel prices by the Narendra Modi-led government in 2015 – to link the local retail market prices with global price trends seems to be meant more to mislead the general public and direct consumers than for any honest purpose. Over the years, it is noticed that retail oil prices are often raised quickly whenever the crude oil prices in the global market firm up. The country is almost 87 percent dependent on imported oil. The retail oil prices are rarely reduced when import prices drop, even over a significant period of time. The prices of petrol and diesel account for the biggest source of tax revenue and levies of the central and state governments. There lies the rub. Very diligently, petroleum has been kept outside the purview of the Goods and Services Tax (GST).