Maybe it is high time that banks should consider kicking off a scheme under the name “Petrol Loan” under which we all will be paid a lump sum for purchasing petrol on a yearly basis with a colossal interest rate.Owning a petrol car has now become a fetish for only the upper class people. Twitter is flooded with people spitting fire upon the ruling party. One of the posts said, ”I will buy a litre of petrol and then set my own car as well as other cars on fire as they are useless now”.
As per the latest decision, the price of this pristine luxurious liquid has been increased by 7.5 rupees per litre. The announcement was made last week by S Jaipal Reddy who happens to be the Petroleum Minister. He was quoted as saying that owing to the colossal rise in the value of rupee with respect to that of dollar, the prices of fuel can go up by a margin of almost 8 rupees following which there was brouhaha amongst the people. More and more commuters are now choosing diesel cars over petrol cars. The demand for CNG fitted vehicles has also skyrocketed over the past few years ever since the price of fuel started to shoot up. But following the proclamation from the minister, there was confusion as to when the price hike will be enforced. But it all came to light and there was a sudden increase of petrol price from Wednesday night i.e. from the night of 23th May, 2012. The downgrading of the economy is the one to be finger-pointed as the value of rupee with respect to 1USD has become 56.0042 thus giving a fuel price hike of Rs.6.28/L in exclusion to the VAT and local sales tax. Thus, adding all these brings the hike to Rs.7.50/- which is insanely outrageous.
Back in the month of June, 2010the Government of India had made the price of fuel flexible which in turn had made the people apprehensive towards purchasing a petrol car. Kerosene, cooking gas and diesel price had also seen a jump last year. As per the prediction, if this depreciation in the currency rate does not see a consecutive fall, then the oil companies based here stand a chance of concurring losses amounting to a staggering Rs.8000 crore on an annual basis. This downfall in rupee is being termed as one of the biggest falls ever as last year the value of rupee stood somewhere around 46 which brought a consequent stabilization in the economy. The total loss that the industry can suffer this year is almost Rs.72,000 crore.
The whole economy of India has now fallen into jeopardy as the rage building within every common man will set them off and owing to the increase in the expenditure of people; the crime rate also stands a chance of witnessing a consequent increase in percentage. The VAT that is slapped along with the price of petrol is 20%.