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Petrol Diesel Price Hike: Today i.e. on May 15, the prices of petrol and diesel in India were increased by Rs 3 per liter, which is the first increase in the last four years. This increase in India is the lowest compared to the huge rise in fuel prices globally due to the Iran war and the blockage in the Strait of Hormuz.

The disruption in the global oil supply chain, especially in the Strait of Hormuz, the world’s most important oil route, due to the Iran war has sent fuel prices skyrocketing across the world. While many developed countries immediately passed this burden on to the public, India has adopted a different strategy.

If we look at global data, the growth of 3% in India is the lowest among the major economies of the world. In comparison, fuel prices in the UAE have increased by a whopping 52%. Prices in the US have increased by 44%. About 82 countries of the world have so far implemented fuel rationing or emergency ban, whereas India has not taken any such step yet.

India suffered daily loss of Rs 1000 crore for 76 days

When crude oil prices crossed $100 per barrel in the global market, India’s public sector oil companies kept the prices stable for 76 consecutive days. During this period, oil companies suffered huge losses and the under-recovery figure reached Rs 1,000 crore per day. If the government had passed the entire burden of global prices on the public, the prices of petrol and diesel in India could have increased by 200-300%, which would have badly affected the poorest population.

‘Twin Drain’ on Forex danger of

India imports 80-85% of its crude oil needs and every $10 increase in crude oil price increases the import bill by $13-14 billion. India’s annual oil import bill is estimated to reach Rs 12-15 lakh crore. Along with this, gold import has also reached Rs 6 lakh crore ($72 billion). Oil and gold together are putting huge pressure on India’s foreign exchange reserves, which officials are calling a “Massive Twin Drain&#8221. Are saying.

‘Voluntary Savings’ Citizens should adopt: PM Modi

In this situation of crisis the government asked citizens for ‘voluntary restraint’ rather than rationing or punitive control. Appealed to take action. The Prime Minister has made three special requests to the countrymen:

• Reduce fuel consumption.
• Avoid buying gold for at least a year.
• Cut down on non-essential foreign trips.

Officials believe that only by halving gold imports the ‘current account deficit’ But the pressure can be quite low. It has been clarified by the Government of India that the increase in prices by Rs 3 is only a small ‘cost signal’. While the government and oil companies are still suffering a loss of Rs 26 per liter on petrol and Rs 82 per liter on diesel.