Fuel prices set to touch all-time high

RANCHI: Fuel prices in the state are set to touch an all-time high and a hike in prices of all other commodities as a cascading effect is bound to follow soon with the Union petroleum ministry hinting at an increase of Rs 4 per litre on existing petrol and diesel prices.
Petrol and diesel prices in the city were Rs 75.76 and Rs 70.83 on Thursday. In 2013, when the fuel prices had seen a similar spike, the price of petrol had breached the Rs 76 mark.
Petroleum dealers and traders here believed that a hike of Rs 4 would have a major impact.Congressman Shashi Bhushan Rai said the move has "exposed BJP". "When Narendra Modi came to power, petrol and diesel prices are one of the key issues on which Congress was cornered but during the past five years, petrol prices in Ranchi have gone up by Rs 13.27 whereas the increase in diesel prices is Rs 18.92 per litre. The Union petroleum ministry has now hinted at Rs 4 hike on petrol and diesel prices. In the last four days, we have seen a price rise of Re 1 per litre," he said.
Comparing the current rates of petrol and diesel with the rates that prevailed on May 18, 2013, Rai said petrol increased from Rs 62.39 to Rs.75.76 per litre and diesel rates increased from Rs 51.91 to Rs. 70.83 per litre. "We are unable to understand why the government has not brought petroleum products under GST regulations," he said, expressing hope that a change in taxation would rationalise the price fluctuations.
Transporters would be the worst hit by the proposed hike. President of the diesel autorickshaw association Dinesh Soni said since 2014 they have increased the fare just once. "Prices of commodities have been rising with every passing day but we cannot increase the fare regularly. However, if there is a jump of over Rs 4 we would be left with no option but to pass it on to the commuters," he said.
Those operating buses for schools are also a worried lot. "Every time the schools increase the bus fare, a part of it goes to the school fund and we get only a part of it but once there is a surge in the rate of diesel, the entire burden is passed on to us," said Anup Singh, one of the bus contractors.
Federation of Jharkhand Commerce and Industries (FJCCI) secretary general Kunal Ajmani said they are yet to understand the logic and benefit behind introduction of dynamic pricing. "Except for the convenience that the pinch is not felt immediately, we don't see any benefit in introduction of dynamic pricing because the rates have continued to increase at a regular pace," he said, adding that the Centre must act swiftly to control the hike to prevent overall inflation. "Petrol and diesel prices have cascading effect and in a state like Jharkhand where power situation is poor, even the production cost goes up in manufacturing industry," he said.