India saw fuel prices increase for the 22nd time on Monday. With this, the cumulative increase in diesel totals Rs 11.14 per litre while petrol sums up to Rs 9.17. Research by ET NOW reveals that a significant chunk of the current market price of fuel consists of excise duty and taxes. For example: petrol in Delhi costs Rs 80.5 per litre, out of which Rs 51.8 is only excise and taxes. Hence this continuous increase in fuel prices is now raising an alarm. Subdued incomes and job losses were already a pain point for consumers; the fuel price hikes are only going to be an additional burden on their pockets.
“It would only be fair if OMCs came out and explained where this price increase is coming from”, says Saurabh Chandra, Former Secretary, Ministry of Petroleum & Natural Gas in a discussion with Tamanna Inamdar on India Development Debate. He suggests that the entire price build-up from the Arab Gulf oil to the consumer price should be available on the website of the OMCs.