Crude oil prices have come down but fuel prices will not; domestic cooking gas price hiked by Rs 50
KOCHI: When the situation was ripe for a reduction in fuel prices by about Rs 10 due to the fall in crude prices in the international market, the Centre blocked it by increasing excise duty. While the duty on diesel was increased from Rs 8 to Rs 10 per litre, that on petrol was increased from Rs 11 to Rs 13. The duty was increased to avoid revenue loss to the government and to avoid financial distress. The Petroleum Ministry clarified that the retail price of petrol and diesel will not increase as the liability of the duty increase will be borne by the public sector oil companies.
Meanwhile, the price of cooking gas for domestic use has been increased, disrupting the family budget. Petroleum Minister Hardeep Singh Puri said that the price of a 14.2 kg cylinder will increase by Rs 50 from today. The price of a cylinder in the general category will increase to Rs 853 and the price of a cylinder under the subsidized Pradhan Mantri Ujjwala Yojana will increase to Rs 553. Puri also clarified that the price of LPG will change every two weeks.
Production costs have come down
The cost of producing petrol and diesel has come down significantly as Brent crude prices have fallen in the international market amid Donald Trump's threat of a tariff war. Petrol and diesel prices have not been reduced in India since March 14 last year.
Current price of Brent crude: $64
Price drop of crude per barrel: $10
Stock market crashes; Rs 16 lakh crore wiped out
The Indian stock market crashed yesterday as Donald Trump's trade war fears intensified. Following the footsteps of markets in Asia and Europe, the Sensex fell 2,226 points and the Nifty fell 743 points. At one point, the Sensex had fallen as much as 4,000 points. Yesterday alone, investors' wealth worth Rs 16 lakh crore was wiped out.
Tariffs are a warning
- Donald Trump's trade war is putting the world on edge
- Reciprocal tariffs and retaliatory tariffs will exacerbate inflation
- America and Europe heading for a deep recession
- Rupee's volatility against the dollar increases the risk of losses