Petrol, gas on fire

 Petrol, gas on fire

Most people I know focus on absorbing the main happenings and events of the day when watching news on television. I can hear the anchor/newscaster or other people on the screen, and they repeat the same news many times a day, so I focus my attention on the ticker creeping quietly at the bottom of the screen, for it is there you can find the germ of what might blow up to hog the whole screen the next or several following days.

Yet with petrol prices, it went the other way round. After the quiet of, I am told, 138 days, one evening I saw and heard heated discussions on the increase in the prices of petrol and diesel. But after nearly 15 upward revisions in the last few days, it seems to have become a piece of routine information for the media and now it has been demoted to the level of a few words moving silently on the screen, that too if they are not hidden by advertisements.

I saw that many a times in the last fortnight and suddenly my quest for gyan (knowledge), so far in a deep slumber, jolted upright. Why should I not understand the whole issue and the impact it was going to have on my pyare deshwasi (dear countrymen), I thought. Bloated with the feeling of smug kindness similar to that obvious on the faces of political figures painted on billboards and banners when they announce their programmes for aid, assistance, relief, I dived into my project.

Perfectly aware that I could not even ruffle a leaf in the society with only this overpowering feeling, I decided to understand the economics of fuel price hike so that I could better explain it to people around me and perhaps lessen their misery.

I read about it with enthusiasm, spending the hot morning and afternoon glued to paper and screen with words swimming before my eyes.

Some bits that you, the wiser ones already must be aware of, included that the Central government, in a noble gesture, cut the excise duty on November 4. Many state governments did the herd act by reducing VAT supposedly to ease the burden on the consumers.

Analysts say the freeze on petrol price for more than four months was due to elections in five states. I can totally understand that so I felt very happy with the authorities. If somebody would listen to me, I suggest making a fresh calendar for elections, spreading them out so that price hike is kept in check. Jacking up fuel prices has had a cascading effect on everything else, because petrol and diesel are used to transport all commodities, goods and services.

But the government did not accept that. Their point was that global crude prices had surged following the Russian invasion on Ukraine.

On further study the small volume of my cranial contents ingested that international crude price, Central and state taxes, exchange rates, high seas and inland freight and other additional costs were responsible for the rates of petrol, diesel, not to forget CNG, PNG and LPG, in our country.

I was also mighty pleased with the knowledge that for every rupee of tax I pay, Central Government and state government share the amount 50:50. But what is this? In case of petrol more tax-share goes to Modi ji because the sarkaar (government) at Dilli needs bigger support for all welfare schemes. It hurt me, a law-abiding citizen of this country, a little because all along I had the feeling that it was Yogi ji’s ‘thumping’ victory in the recent state elections which had shone the torchlight on the uncertain dark path to the general elections, 2024.

I soaked up some other kinds of information too like (in a gist)

All countries have access to the same petroleum prices of international markets but then decide to impose different taxes… The cost of crude oil is the largest component of the retail price of gasoline or petrol. Taxes and subsidies, cost of refining and transporting, commission, etc., are included in retail price. https://statisticstimes.com/economy/countries-by-petrol-prices-and-gdp

Cartoon: Japan Times

The heartening news was that we are far behind Hong Kong, where petrol is the most expensive at $2.83 yet also far ahead of Venezuela with petrol for $0.03 per liter.

See, I totally understand the government point again. They cannot cut down on excise tax. That keeps the liquor shops running. It is not about the loss of revenue to the government, but the fact that daaru (liquor) is the best dawa (medicine) to forget everything, including inflation.

About frequent petrol and diesel price hikes, CNBC-TV18 sources said that ‘sustained fuel price hikes may not be needed if crude prices stabilise at current levels’. Should we first have a community prayer meeting/ summit meet for peace in the world?

My thirst for knowledge led me to reading terms like bulk user rate, petrol pump price, robust order book, longevity in revenues, consistent returns on the back of robust cash flow growth, no additional capital coming into oil & gas globally at these high prices.

And that is where I called it quits.

I got confused. In spite of the high cost of petrol, there are cars and cars on the roads and traffic jams too. The sale of cars has seen steady bookings and retail sales, say the dealers. I see lone persons in vehicles, no car pools.

Alas, friends, Indians and countrymen (sorry, Mark Anthony) the whole learning exercise did not go beyond a few hours. I soon realised that my understanding of world trade and economy is of abysmally low standards and that I should leave it to people with higher intellect and understanding. I do not drive, so it should be okay if I do not know about the subject. I would just follow in the footsteps of our own Finance Minister who had expressed surprise over the skyrocketing price of onions and in her defence, explained that after all she did not eat onions.

Now I am looking at in a positive way. Perhaps the government wants to teach us about following a simple lifestyle and learn the art of saving money. Stop going out and spending. Young men! Forget about taking your girl friend  for a bike ride. Sell your vehicles, take a bus or walk. Great for health too! It is environment-friendly also. Costlier petrol would mean less traffic, less pollution.

Maybe I myself should leave this path of knowledge and go back to sharing about non news-making issues which all of us are familiar with and I can pen hundreds of words about.

Meanwhile, as a well-wisher I would suggest - download the app for Uber Bailgadi (bullock cart) please!

Uber Piggyback

                                                                                            

- Anupama S Mani