Wait, did Indian Oil Corporation just cut fuel prices by 1 paise?
- Author: Eleanor Harrison May 31, 2018,
May 31, 2018, 18:30
Slamming reduction of 1 paise on fuel, Ruchita Maheshwari has shared a picture of Amitabh Bachchan as KBC anchor and him questioning us, "Kya Karenge aap is Dhan Rashi Ka?"
Interestingly, prices for the next month have been worked out on the basis of higher-than-notified tax rates for high-speed diesel (HSD) on the orders of the Ministry of Finance to enable the government to announce a relatively lower rate for political objectives. Officials have talked about introducing some "long-term" solution without giving details. "It shows the government's complete insensitivity and failure to stop the fuel price hike". Politicians were quick to chime in.
Incidentally, the error was confined to the website and wasn't transmitted to dealers - so consumers were charged the right price. While Kerala CM has announced a cut of Rs 1 per litre on the tax on fuel, Punjab CM Amarinder Singh described "1 paisa" reduction of fuel price as a cruel joke.
Fuel prices vary from state to state due to local taxes. He tweeted: "Dear PM, you've cut the price of petrol and diesel today by 1 paisa". The reduction in fuel prices on the second consecutive day comes after 16 days of incessant rise by oil firms.
Crude prices have declined to about $75 a barrel from $80 last week on hopes that key oil producers led by Saudi Arabia and Russian Federation will boost supplies to calm runaway prices, which if left unchecked could lead to demand destruction.
The TMC had held protests in the city against the fuel price hike yesterday.
Global crude prices have, however, fallen by about $5 per barrel to around $75 a barrel in the last fortnight.
Kerala's move will put pressure on the Modi government to cut the excise duty rate on petrol and diesel and on the 20 state governments that the BJP heads. The retail prices to decline by 1Rupee. This will cause a revenue loss of Rs 509 crore annually.