Crude Prices at a 28 months low-The Diesel prices should be immediately brought down.

Diesel pricing issue-Why should the diesel prices be immediately brought down? (With inputs from Pranav Jha)
Despite prices of International crude having come down by 12.5% ever since the Modi government took over, price of Diesel in the domestic market have gone up by 3.9%. Sold at Rs 56.71/ltr when the BJP assumed office, Diesel today is available at Rs 58.97/ltr.

While the crude oil prices in the International Market are at their 28 month low having gone down to Rs 5524.12/barrel from a high of Rs 6318.76/barrel on May 26,2014, diesel prices inside the country have been increased by Rs 2.26. The BJP Government has increased the Diesel prices by 3.9% on 4 different occasions since they have assumed power at the Centre. When prices were at such low level 28 months back, the price in the domestic market in Delhi was Rs 47.15/liter, and its only logical that corresponding to the international slide, prices in the domestic market also come down proportionately.

Why is the Union Govt not reducing Diesel prices? What is restraining them to pass on the benefits to the ordinary Indian? Who is the intermediary benefiting out of the glaring price gap?

Isn’t the Government aware that Diesel driven inflation is something that adversely affects the largest section of population? Aren’t they bothered about the fact that prices of Diesel affect the prices of things as basic as food grains, vegetables and public transport?

The Congress Party demands that the Diesel prices be immediately brought down in proportion to the reductions in international markets.

In the International Market – the prices of crude oil are at their 28-month low.

International crude oil prices were at this level in December 2012 and that the price of diesel in Delhi was Rs 47.15 per liter.

The price of diesel was 56.71 Rs/Ltr when the BJP govt took office. The price of Diesel has been increased to Rs 58.97 per liter now, a jump of about 3.9%.

The price of the Indian basket on May 26, 2014 was Rs 6318.76 per barrel, according to the official release on PIB- http://pib.nic.in/newsite/PrintRelease.aspx?relid=105155

The price of crude oil (Indian basket) has come down to Rs 5524.12 per barrel. http://pib.nic.in/newsite/PrintRelease.aspx?relid=110411

Since May 26, the crude oil prices (Indian basket) have come down by Rs 794.64 per barrel which is a reduction of about 12.57% from the prices at which the NDA Government took over. Whereas, inside the country the Government has increased Diesel prices by 3.9%.

When the government can increase the prices of petroleum products when international prices go up, why should the benefits of a drop in prices not be passed on to the consumer.

The Government seems to have turned a blind eye towards the Diesel driven inflation impacting freight, transportation and use in agricultural implements. This also directly impacts the prices of essential food commodities such as vegetables, fruits, milks eggs etc.

The BJP should bring down the price of Diesel to December 2012 levels. This is a strong anti-inflationary step but the government is profiteering from international trends.


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