Spokesperson: Shri Anshul Avijit: He said that the country is going through an unprecedented economic crisis. While inflation, unemployment and poverty remain at record levels, refusing to come down, other socio-economic indicators continue to slide, be it the Hunger Index or the Human Development Index. The gap between the rich and poor is widening at an alarming rate. The GDP, once a healthy 8%, has plummeted. There is no doubt that the BJP government is solely responsible for overseeing India’s economic ruin.

The ‘Bharat Jodo Yatra’ is an attempt to unite India emotionally, socially and economically, and the tremendous response it has received in its initial days signals hope for the future. With every step it takes, from Kanyakumari to Kashmir, it continues to raise the issues that threaten the well-being of our nation. Price-rise, caused by elevated prices of diesel and petrol, is foremost among them. The cascading effect of high fuel prices is eating into incomes and livelihoods and pushing more and more Indians into poverty. During the UPA, 28 crore people were taken out of poverty; now most of them have been pushed back in it.

Some critical questions need to be answered with regard to fuel prices.

1. Since June 2022, when the price of crude oil in international markets was $116 bbl, there has been a 37 % decline in prices. As of 26 September, 2022, three months later, crude is down to $84.80 bbl. Why has this benefit not been passed on to the Indian consumer? Why the prices of petrol and diesel have not been decreased in the same proportion?

2. By comparison, in May 2014, the last month of UPA rule, international crude was $106 bbl. But retail prices (in Delhi) had been moderated to Rs. 71.41 for petrol and Rs. 55.49 for diesel. The intention was that the people of India were shielded from high prices to whatever extent possible.

What then explains the brazen insensitivity of the BJP government?

3. The BJP government has earned a staggering Rs. 28 lakh crores (Rs. 28,12,585 crores; source PPAC) from cesses and duties on fuel from 2014 to Q1 ’22-’23. In fact, it has earned almost 10 lakh crores in the last two years alone (Rs. 4,55,069 crores in ’20-’21 and Rs. 4,92, 303 crores in ’21-’22, Source PPAC).

Crucially, this period of high fuel costs coincides with rising inflation, clearly establishing the proportionality between the two. The rise in fuel prices leads to high prices of everything else. Inflation currently stands at 7%, while the RBI’s target for inflation is 4% and tolerance band is 2%, either side. 7% is an unacceptably high level.

4. The excise duty on fuel remains incredibly high – Rs. 19.90 for petrol and Rs. 15.80 for diesel. The two excise duty cuts, on November3, 2021 and May21, 2022, were disingenuous, even that has not been passed on to the people. For example, before May this year the BJP government had increased petrol by Rs. 10 over 60 days. But the decrease was only by Rs. 8. Diesel prices were also increased by Rs. 10, but the decrease was only Rs. 6. (The fuel prices were increased as soon as the assembly elections in five states of UP, Punjab, Manipur, Goa and Uttarakhand got over.)

Furthermore, most of the excise duty is not divisible by the states. This is the Special Additional Excise Duty, Road and Infrastructure Cess and Agriculture and Infrastructure Development Cess. Only Basic Excise Duty is shared by the states, which by comparison are minuscule – Rs.1.4 for petrol and Rs. 1.8 for diesel.

5. The excise duty during UPA, by comparison, was Rs. 9.20 for petrol and Rs. 3.56 for diesel.

6. Discounted crude oil from Russia has given India a gain of 35,000 crores so far. The discount is as much as $30 bbl. With the government imposing windfall tax, it is estimated that it may earn up to 1.3 lakh crore through new levies. Earlier 1% of imported oil was Russian, now it’s 12%.

Why does the government not let the consumers benefit from this ‘windfall’?