Petrol prices cross Rs 80-per-litre mark in city

Source: The Hitavada      Date: 15 Sep 2017 10:21:50


 

Business Bureau,

UNION Government’s new innovation to revise prices of petro products daily has not gone down well with the consumers. They feel that the days are not far when petrol in the city would touch the Rs 100 per litre mark. On Friday, the prices of petrol per litre in city will be quoted upwardly at Rs 80.02 per litre resulting into surge in transportation cost.


Confirming the development, Harvinder Singh Bhatia, President of the Vidarbha Petrol Dealers Association, said petrol will cost Rs 80.02 at all the outlets of Indian Oil Corporation on Friday. With prices showing consistent hike by addition of meagre amount of paise on daily basis, consumers were not feeling the heat a one month ago. However, when the prices started nearing Rs 80 per litre, the consumers, caught between devil and deep sea, are wondering what would be the future.


It took 45 days of journey for a petrol to become costlier by Rs 6 per litre i.e Rs 80.02 per litre. There is strong resentment among consumers including transporters, traders, businessmen and the common man, who earlier were tight-lipped when the prices rose meagre by a few paise, sources said.


“Since Government had introduced ‘dynamic’ daily pricing system for diesel and petrol, consumers did not pay much attention to the revision in prices. But after a span of 45 days, consumers have now started complaining when they are refuelling their vehicles at the petrol pumps. Lot of discussion is taking place at every nook and corner of the city,” said Pranay Parate, Secretary of the Vidarbha Petroluem Dealers Association.


Government had said in the media that it had revised the commission of petroleum dealers and therefore it was daily revising the prices of petrol and diesel on upward side. It said that the commission to the petroleum dealers too had been hiked by Re 1 on petrol per litre and 72 paise on diesel per litre. However, petroleum dealers said that the commission on petrol had been hiked by only 22 paise and on diesel it is 17 paise. “This is nothing but fooling the people of the country,” a petroleum dealer on the condition of anonymity said.


There is one component in the commission which is technically called as Licence Fees Recovery (LFR). Before the exercise of daily revision of petro product prices, the LFR was 4.8 paise per litre on petrol and 3.6 paise per litre on diesel. This LFR was recovered from petroleum dealers. Now, Government had rechristened the name as non-fuel revenue (NFR) which has been hiked by about 50 paise per litre on petrol and 40 paise per litre on diesel.


Petroleum dealers alleged that Government had directed three oil marketing companies (OMC)-- Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) to conduct green fuel programme all over the country. All the three oil marketing companies were told to conduct 300 programmes each.
For organising these 900 programmes, each OMC had to contribute Rs 15 lakh per programme which amounts to Rs 135 crore.


“In order to recover the hefty amount of Rs 135 crore which was eroded in conducting the green fuel programme, oil marketing companies are recovering the money from consumers. Government has innovated a new exercise to revise the prices of petro products on daily basis. Now, instead of passing the benefit of the lower crude oil prices, it is looting the consumers as per its whims and fancies,” said a petroleum dealer.