Petrol and Diesel prices in India may soon see another hike. As per the RBI request to the Govt. of India to increase the fuel prices to cut down the fiscal deficit, there may soon be another hike in the Petrol and Diesel prices in India. There has been already lot on increase in the prices in last one year and it doesn’t seem to stop. The international prices keep going up and the domestic prices are somewhat controlled. As a matter of fact, there is a subsidy on Diesel which causes a financial deficit on the government of India. But on the contrary, something which is never talked about is the sky high taxes on petrol and diesel. The petrol and diesel in India are taxed heavily and these taxes make the cost of fuel almost two folds the price at which it leaves the refineries.
With petrol prices already close to Rs. 60 per litre and Diesel close to Rs. 35 per litre, god knows what is yet to come. Experts say that the prices of petrol may go as high as Rs. 10 per litre but in a phased manner, which means two or three small increases over a period of few months. Whatever happens, its only going to burn a deeper hole in the pocket of the consumers, both in terms of fuel prices and also in terms of inflation on all the products and services which use Petrol or diesel in any way.
Such hikes in petrol and diesel prices are going to put more and more burden on common people and their standard of living. The down side is that such hikes hit the financially weaker segments of our society even worse indirectly in the form of increased food and products inflation. If such trend goes on, the life of common man in India will become more and more miserable.