Fuel prices breach Rs 98-mark in Kolkata

KOLKATA: Petrol and diesel prices in Kolkata crossed Rs 98-mark on Sunday, raising concerns of inflation among common people. The rise in fuel prices results in a high rate of inflation.

Trinamool Congress has blamed the BJP-led Centre's "anti-people" policies as the reason behind "the abnormal hike in the prices of petrol and diesel".

Meanwhile, the state BJP president Dilip Ghosh declined allegations against the Centre. "The prices are going up due to an increase in crude prices in the international market. However, the Centre is trying to control the same," Ghosh said.

However, experts opined that the increase in rate of crude oil in the global market was not leading to price hike of fuel prices in the country. Economist Abhirup Sarkar said: "It is stated that the hike in the fuel prices is due to the increase in the rate of crude oil in the international market. But it is incorrect. The fuel prices in our country do not drop when the rate in the international market goes down as the government increases the rate of tax to generate more revenue. As a result, consumers do not get the benefit of the drop in crude oil prices in the international market. Again, the tax slab remains unchanged when the rates in the international market increase. Common people are forced to bear the brunt of the abrupt increase of fuel prices."

"Already, the inflation rate has gone up. Petrol is a product that has inelastic demand which means its consumption will not go down despite increase in prices. So, the tendency of changing the tax slab was not found to be that strong as it is a strong source of revenue generation for the government," Sarkar said.

Petrol and diesel prices have increased almost every alternate day in the past one

and a half months. On Sunday, prices of

petrol and diesel increased by 33 paise

and 25 paise respectively in Kolkata,

taking their costs to Rs 98.30 and Rs 91.75 per litre respectively. On June 1, the prices of petrol and diesel were Rs 94.50/litre and

Rs 88.23/litre respectively.

Monotosh Singh, who went to buy

vegetables at Jadubabur Bazar in south

Kolkata, said: "We are finding ourselves in a helpless condition as the prices of essentials and vegetables are increasing everyday

while our course of income remains the same. Government should stop pushing

people towards death when they hardly

have adequate money amid the economic slowdown due to the pandemic".

"Driving cars or riding two-wheelers is now a luxury. It is turning unaffordable. It costs at least Rs 35 to Rs 40, if we travel a kilometre by two-wheeler," said Sanjay Sen, who was found refilling petrol in his bike at a pump in Central Avenue.

Aroop Biswas, the state Power minister, said: "It is ridiculous. The country has never witnessed such abnormal and continuous hikes in prices of petrol and diesel since independence. It is leading to an increase in prices of essentials and vegetables. People are suffering due to the anti-people policies of Narendra Modi."