Spokesperson: Prof. Gourav Vallabh: He said that on one hand the Real GDP is not increasing while on the other hand, the other GDP (Gas, Diesel and Petrol) is not decreasing.

Retail Inflation, GDP growth, and a depreciating rupee are some of the examples that paint a concerning picture of how the economy is being managed. The current BJP government is creating new lows with more data points released by its own government. The middle and lower-income groups suffer the most due to the callousness and incompetence of the government.

The consistently high retail inflation is one of the most concerning areas that need immediate government intervention. Retail inflation has been above RBI’s upper band of 6% for the last 7 months. Commodities such as food, vegetables, and fuel hurt the middle and lower-income groups most. The government has been primarily the most inconsiderate towards the fuel prices. Since they have a cascading effect across all economic activities, the government’s inactions speak of its cluelessness and misguided focus.

The prices of crude oil have been consistently on a downward spiral for the last few months and are at a 7-month low. But the prices of Petrol and Diesel in our country don’t seem to reflect this trend, even after deregulation, which means that the prices of petrol and diesel should change as per global prices.

•  As per the Petroleum Planning & Analysis Cell (PPAC, Government of India), Crude Oil Indian Basket as on 8-Sep-22 was USD 88.00 per bbl

•  The government revised the petrol and diesel prices on May 2022. On May 21, 2022, the government announced a cut in excise duty on petrol and diesel by Rs 8 and Rs 6 a litre, respectively, leading to a reduction of petrol rates by Rs 9.5 per litre and diesel by Rs 7 per litre

•  After elections in Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur, the petrol and diesel prices r were increased 9 times in 10 days between 20-Mar-22 and 31-Mar-22

•  Here’s a summary of the crude oil prices (Indian Basket) per bbl since the petrol and diesel prices were last revised:

Year June July August Sept 8, 2022 % Change in last 3 months 2022-23 $ 116.01 $ 105.49 $ 97.40 $ 88.00 24.14%

•      Crude oil prices have fallen by 24% in the last 4 months but the common man has received no relief from the government, even with retail inflation consistently over RBI’s upper band of 6%

•      50-55% composition of the overall price being paid by the consumers for petrol and diesel is contributed by the crude oil prices.

•      One should keep in mind that in May-2014, crude oil prices per bbl were USD 106.49 and petrol was at Rs. 71 per litre and diesel was at Rs. 55 per litre (During UPA government)

•      Even the LPG rates ($/metric tons) have dropped significantly over the last few months but the consumers have seen no relief. Saudi Aramco LPG prices per metric tonnes ($/MT) are as below:

Year June July August September % Change in last 3 months 2022-23 $ 750 $ 725 $ 670 $ 650 13.33%

Hence, we demand a Rs. 15 per litre reduction immediately on petrol and diesel prices and a reduction of at least Rs. 150 per Gas Cylinder.

We have three specific questions for the government:

1.  When the crude oil prices are at a 7-month low and inflation above RBI’s upper band of 6% for the last 7 months, why are the consumers having to bear the brunt of high fuel prices? Why is the relief not being passed on to the consumers when the burden of high crude prices is always passed on?

2.  Are the petrol and diesel prices regulated by elections dates or by global rates?

3.  What are the excuses by the Modi government for not passing on the relief on decreasing LPG prices to the consumers? Does the Modi government only believe in passing on the burden to the consumers and go into hiding when it comes to passing on the relief?Sunday, September 11, 2022