Experts confirm that Petrol will touch Rs 100 in Mumbai within February while MP Minister congratulates PM

Experts in Oil commodity trade (talking to TNB on condition of anonymity) predict that the Petrol prices will hit the Rs 100 mark in Mumbai within this week. Last week itself the price has breached the Rs 100 mark in Anuppur in MP and Srigananagar in Rajasthan.

They cite various reasons primary among this is the output cut by Oil producing nations like Saudi Arabia who have announced a unilateral cut in its production by around 1 million barrels per day which took the International Crude prices sky rocketing to USD 63 per barrel, the highest level in more than a year.

They also feel that the international prices will further firm up as increased administration of vaccines across the world and due to anticipation of forthcoming stimulus packages soon to be announced. These measures together will help in opening up commercial activities across the world and will help in demand firming up.

This past week also witnessed the further firming up of prices due to winter storm striking parts of US especially Texas resulting in shutting refineries, stores and delaying shipments. The storm seems to have eased a bit in the last 3 or 4 days but seems that it might still have some effects.

Today the retail price at petrol vending stations will be Rs 97. The daily increase in the dynamic pricing has been of around 30 to 40 paise per day. Politically too, Petrol and Diesel prices have always been a sensitive issue in India. The main reason is because is that an increase in the prices of fuel creates a further ripple effect which is inflationary for the entire economy.

The Union government levies an excise duty of around Rs 32.9 per litre on petrol which has seen a jump of around 64 per cent after the government raised taxes by a record margin to mop up gains arising from fall in international oil prices which was at a record 2 decade low and to milk the system by as much as possible.

Opposition parties, including Congress following the relentless hike in the retail prices has demanded an immediate cut in taxes to ease the burden on the common man but The Union Minister of Petroleum has nevertheless declined to accept any such request.

Sonia Gandhi recently wrote to the PM, “Fuel prices are at a historic and unsustainable high. In fact, petrol has breached the ₹ 100/litre mark in many parts of the country. The surging price of diesel has added to the escalating woes of millions of farmers," and that Centre has chosen to profit from "People's Misery and suffering."

She also mentioned that these highs are despite the moderate prices of international crude oil, comparable to record highs during UPA times. “This is nothing short of extortion to cover up economic mismanagement. I fail to understand how any government can justify such thoughtless and insensitive measures directly at the cost of our people," she added.

"It is time for your government to focus on solutions instead of looking for excuses. India deserves better," Ms Gandhi wrote.Government Should Find A Solution: Mayawati On Fuel Price Rise

Mayawati, the Bahujan Samaj Party leader also through a tweet has recently expressed concern over increase in prices of petrol, diesel and cooking gas and urged the government to take cognizance of it and find a solution.

Mayawati said, "The prices of essential items like petrol, diesel and cooking gas (LPG) are increasing in an uncontrolled manner after government control over the prices were removed. It has created problems everywhere, and lives of the people are affected. The government should take cognizance of the seriousness of the situation and find a solution."

Shiv Sena, the ruling party in Maharashtra and a former ally of BJP, also taking a swipe at the BJP government, whose slogan during the 2014 Lok Sabha elections was 'Acche Din Aane Wale Hain' (good days are about to come), Yuva Sena hung hoardings at petrol pumps and roadside in Bandra West. The hoardings asked ‘Yahi Hain Acche Din?’ (are these the good days?). The remark was followed by a comparison of fuel prices in 2015 and 2021, according to which the price of gas, diesel and petrol ranged between ₹50- ₹65 in the former year and corresponding prices are nearing or have already crossed the ₹90 mark in the latter.

Madhya Pradesh Congress MLAs Ride Bicycles In Protest Against Fuel Prices and there is word that a nationwide stir is planned by Congress to attack the government on its reluctance to reduce taxes. Another Opposition leader Tejashwi Yadav of RJD in Bihar took to riding a Tractor to protest both against the exorbitant Fuel prices and the Farm Laws.

But even such times Haryana Chief Minister wade into the controversy saying, "Fuel prices increased by around 10 per cent to 15 per cent in the last 4 to 5 years. Overall, it is not too much but the government is keeping an eye on it." He added, “whatever revenue is collected by the government, it is used for people.

Union Petroleum and Natural Gas and Steel Minister Dharmendra Pradhan termed "less fuel production by manufacturing countries to gain more profit" as one of the reasons behind the price hike. There are two main reasons behind the fuel price rise. The international market has reduced fuel production and manufacturing countries are producing less fuel to gain more profit. This is making the consumer countries suffer,

But the best response so far has been that of Madhya Pradesh Medical Education Minister Vishvas Sarang believes Prime Minister Narendra Modi must be congratulated for promoting use of solar and electric energy, and argues that this will "strengthen our control (over) oil pricing".

"See... I want to congratulate Prime Minister... he made arrangements to control international oil prices (with) use of solar energy for transportation. Modiji's decision to bring electric vehicles will strengthen our control (over) oil pricing," Mr Sarang said.

"... demand and supply decide (oil) prices in the global market. So, if we reduce the demand we will have control over prices. This is why Modiji has decided to bring in electric vehicles... we will be able to control the prices of oil," he declared.