Rajeev Singh Rathore

Now his own people are saying what was being whispered in the corridors for long!

BIG: Government cuts excise duty by Rs 10 on petrol and diesel amid West Asia war. GOOD BUT .. Qs 1) will the cut only be for a month till elections are over or will it sustain? Q2) did it require a war and a supply crisis for excise duties to be cut? q3) why weren’t benefits ever passed onto consumer when global oil prices were low? Q4) will states now also pass on the benefit to consumers with duty cuts? Q5) are oil company fuel prices driven by market realities or state intervention and yes, ELECTION CALENDARS?

If you saw the headlines about petrol and diesel prices ‘coming down’ and thought the government had offered relief to your pocket – you’d be mistaken. As of now, prices remain the same for dealers and for consumers. What has actually been reduced is the ‘special additional excise duty’ – a levy paid by Oil Marketing Companies to the government. The words ‘special’ and ‘additional’ reveal how unnecessary this tax is. The Oil Marketing Companies have been absorbing losses since the outbreak of the conflict in West Asia. The government has now merely agreed to share a small part of that burden but reducing the 'special additional' levy - that too almost a month later. Relief exists but only in the narrative - not in reality. Instead of manufacturing headlines and fooling people, the government should focus on delivering actual relief to consumers.