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Correspondent

21 August 2024 at 10:20:16 am

Fuel Shock

The latest increase in petrol and diesel prices — the fourth hike in just 11 days — underlines how vulnerable India remains to geopolitical turmoil and its own unfinished reforms in the energy sector. Brent crude surged again after fresh American military strikes in southern Iran deepened fears of the renewal of the Iran conflict on a higher scale. Markets are now gripped by uncertainty as hopes of a negotiated settlement continue to fade. For a country like India, which imports more than 80...

Fuel Shock

The latest increase in petrol and diesel prices — the fourth hike in just 11 days — underlines how vulnerable India remains to geopolitical turmoil and its own unfinished reforms in the energy sector. Brent crude surged again after fresh American military strikes in southern Iran deepened fears of the renewal of the Iran conflict on a higher scale. Markets are now gripped by uncertainty as hopes of a negotiated settlement continue to fade. For a country like India, which imports more than 80 percent of its crude oil requirements, every geopolitical tremor in the Gulf quickly translates into pain at the fuel pump. Since May 15, petrol and diesel prices have risen cumulatively by nearly Rs. 7.5 per litre. In Hyderabad and Thiruvananthapuram, petrol has crossed Rs. 115 a litre. Mumbai, Kolkata, Bengaluru and Chennai are all witnessing sharp increases. Even Delhi, traditionally cushioned by relatively lower taxes, has seen petrol move beyond Rs. 102 per litre. This marks a significant shift after nearly four years of relative stability in retail fuel prices. For long periods, state-run oil marketing companies absorbed the burden of elevated crude prices, shrinking refining margins and a weakening rupee. Political considerations, particularly around elections, often delayed price revisions. The Rs. 2 per litre reduction announced ahead of the 2024 national elections was a reminder that fuel pricing in India has never been entirely divorced from politics. But oil companies cannot indefinitely absorb mounting losses, especially when global crude prices remain elevated. The Centre has already cut excise duties, with Finance Minister Nirmala Sitharaman estimating the revenue sacrifice at nearly Rs. 1 lakh crore. That fiscal cushion has now largely been exhausted. The spotlight is therefore shifting towards states. VAT on fuel remains one of the most lucrative revenue streams for state governments, with some states imposing levies exceeding 30 percent through taxes and cess components. This explains why states such as Telangana, Kerala and West Bengal continue to record some of the highest retail fuel prices in the country. The Centre is now subtly nudging states to reduce VAT rates to soften the blow on consumers. Yet states are reluctant. Their dependence on fuel taxes is structural, not incidental. Apart from excise on liquor, few revenue sources offer such steady and politically manageable returns. Bringing petrol and diesel under the GST framework continues to face bipartisan resistance from states fearful of losing fiscal autonomy. Rising fuel prices do not remain confined to petrol stations. They seep into every layer of the economy as transportation costs rise, food inflation accelerates and household budgets shrink. Small businesses, already coping with weak consumption and high borrowing costs, are facing renewed pressure. India’s recurring vulnerability to crude oil shocks exposes the limits of its energy security architecture. Expansion of strategic petroleum reserves and greater investment in renewable energy can no longer remain aspirational talking points. They must become urgent national priorities.

Ex corporator’s aides attack youth

Ambernath: A heated altercation in Ambernath’s Barkupada area turned violent on Friday evening, after a youth was allegedly attacked with a sword by supporters of former corporator Anita Bhoir. The conflict, which initially began over a minor road dispute involving Bhoir’s daughter, escalated into a full-blown street brawl, leading to injuries, mob retaliation, and stone-pelting at the former corporator’s residence.

 

According to police sources, the incident took place when the former corporator's daughter, while driving home, honked at a young man who was walking in the middle of the road. After repeatedly trying to alert him with the horn, she confronted the youth verbally. A heated exchange of words followed, during which the youth allegedly abused the woman. In retaliation, supporters of Anita Bhoir confronted the youth and allegedly attacked him with a sharp weapon, believed to be a sword.

 

Eyewitnesses say that as the assailants attempted to flee, angry local residents intercepted them and thrashed the attackers. Enraged by the incident, a crowd later gathered outside Bhoir’s residence and reportedly hurled stones at the property. The injured youth, identified as Mangesh Rajput from the Phanse Pardhi community, was rushed to the Ulhasnagar Central Government Hospital and is currently undergoing treatment.

 

The Shivajinagar Police have registered a case based on a complaint filed by Mangesh Rajput. Those named in the FIR include Kunal Babre, Prashant Bhoir, Om, and 6–7 other unidentified individuals. While two dedicated teams have been formed to trace the accused, no arrests have been made as of yet, confirmed Senior Police Inspector Ramesh Patil.

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