Editorial: Running on an empty tank

The fuel prices had increased in line with firming international oil trends, according to industry observers. State-owned fuel retailers had notified the public that the price of petrol had increased by 35 paise per litre, while the price of diesel per litre was hiked by 23 paise, bringing the effective costs to Rs 100.21 and Rs 89.53 per litre, respectively. Delhi and Kolkata arrived late to the party as metros including Chennai, Hyderabad, Pune, and Mumbai had already been reeling from the onslaught of fuel price hike. In May, the price of petrol was hovering around Rs 90.40 a litre, and it took just two months for it to touch the Rs 98.81 mark. But that’s not all. 

Last week, the price of LPG also was hiked, which led to the cost of a cylinder increasing by as much as Rs 25.50 per cylinder. In Chennai, a domestic cylinder weighing 14.2 kg now retails at Rs 850.50. LPG prices have doubled in the last seven years. A refill that would have cost us Rs 410.50 per cylinder in March 2014, now costs Rs 834.50 – more than double its cost (ex-Delhi prices). The situation is so dire that newspapers reported how residents of an apartment complex in Ambattur in Chennai found that the fuel tanks of many of their vehicles had been siphoned dry. CCTV footage revealed that a miscreant had drained the vehicles of their fuel in the wee hours. 

Opposition parties both within the state and nationally have embarked on rallies against the Centre and the ruling parties in the states for their apathy towards the plight of citizens. Their demand includes reducing the tax component levied by both the Centre and the State on fuel price. In Tamil Nadu, the issue is significant as one of the key promises made by the DMK was to rein in fuel price rise. Unfortunately, TN might not be in a position to do so as Finance Minister PTR Palanivel Thiagarajan had elucidated last month. Citing the fiscal condition prevailing in Tamil Nadu, he held the Centre responsible for tripling the tax per litre from Rs 10.39 in 2014 to Rs 32.90 now. He offered a damning indictment of how when the BJP came into power, excise duty on petroleum products was 90% and cess was 10%. Over the years, the Centre proceeded to reduce excise duty to 44% and increased cess to 56%. By the time the pandemic hit us, the Centre increased cess to 96%. And it left the remaining 4% of excise to be shared among the 31 states as devolution of funds, which left them in a state of deprivation. 

The hike in fuel prices might prompt more citizens to take up public transport, despite the associated risks of contracting COVID. For those wary of public transport, the choice is to cough up the price that private commute entails. The absence of adequate charging infrastructure also makes the idea of e-vehicles infeasible currently. And try pitching the idea of using an induction stove to a homemaker and you can expect breakfast at lunchtime. The tragedy of such spikes in fuel charges is that it will hit the common man the hardest. A domino effect gets set into motion, every time fuel prices take flight – from veggies to fruits, to the cost of essentials, edible oil, and everything in between. The Centre and the States must set aside their differences and put together a cohesive plan that addresses such inequities. Like economic relief packages announced to deal with the impact of COVID, maybe it’s time the Centre mulls disbursing petrol and LPG allowances to deserving sections.