By: Vijay Kumar Verma, Editor-ICN Group
SHIMLA: Not at all if we go by the stats of petrol sales in India. Hue and cry over the rising prices of petrol and diesel appear to be a thing of past. Having already risen to the range of 80s people will just be amused to see it in the 100s bracket soon.
Though there have been demands for cut in taxes but the union government is not ready to cut taxes or include it in the GST regime. They know it to be one of the major sources of revenue to fill their coffers. Frankly neither the opposition parties and nor the consumers are serious in their demand. It is no longer an issue in the political market.
The gradual increase has been going in small doses of a few paisa to rupee or so. Even the media has stopped raising consumers concern on the issue. Atleast 50 percent of the fuel price is shared equally by the states and central governments. Not very long ago concerns used to be raised over the withdrawal of subsidy on diesel which would amount to increase in consumer prices. No political opposition too is witnessed these days.
If one goes by the statistics it will be seen that the increasing fuel price has had no impact on the demand. Rather anyone will wonder that the price rise has eventually lead to rise in demand and consumption. We find that the petrol sales have risen by 14.9 percent at 2.37 mt during June this year while the sale of diesel has increased 7.75 percent at 7. 32 Mt.
While on the one hand the higher volumes of sales and higher sale price may be adding to the coffers of state and central governments by way of phenomenal amount of taxes, the larger volumes of imports also drain the country’s foreign exchange reserves. India has indeed turned out to be one of the largest importers and consumers of petroleum products in the world. And that is why Iran is so concerned over India cutting 25 percent on imports.
The higher fuel sales are also attributed to phenomenal increase in sales of Passenger vehicles. The sales of the passenger vehicles in June rose 37.54 percent at 2,73,759 units against the last year’s corresponding month at 1,99, 036, which also marks the fastest monthly growth in ten years. According to one estimate there are already more than 25 crore vehicles on the Indian roads. These stats make one wonder if in actuality there is any poverty in the country?
The increase in sales of passenger vehicles directly adds to their numbers on the already congested roads. They also add to the chaos on roads and to the parking wars. One wonders if there is any corresponding increase in infrastructural facilities like roads, bridges and parking lots in the urban areas? But who has time to delve on such petty issues from dirty politics.
