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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.

RSS had better intelligence gathering 98 years ago

Updated: Mar 20, 2025

RSS

Mumbai: The Rashtriya Swayamsevak Sangh (RSS), which was born in Nagpur in 1925, had a better intelligence gathering network in the city 98 years ago. At least this is what the official biography of its founder Dr K B Hedgewar, which is available on the official website of the organization, suggests.


The biography written by N H Palkar and bears a foreword from the second Sarsanghchalak of the organization M S Golwalkar, has an entire chapter dedicated to the 1927 Muslim riots in Nagpur. It was due to the way RSS handled the Muslim aggression, the organization could quickly spread across the central province and today's Vidarbha region, the book boasts.


The chapter titled "Nagpur Ka Danga" (Riot in Nagpur) narrates in very detail how the communal tension was brewing up in Nagpur since the 1920 Congress session in the city and how the incidents of Muslim aggression had increased ahead of the formation of the RSS in 1925 and how Hedgewar used to call it 'Muslim aggression' instead of 'Hindu-Muslim riots'. The chapter also cites editorial content of some of the then popular newspapers in the city while narrating the buildup.


The chapter also narrates how Muslims were planning to take advantage of caste divisions among Hindus and how Dr Hedgewar's efforts to unite Hindus defeated the purpose. At the same time the chapter also narrates how the intelligence gathering network of the RSS helped its leaders understand the aggressive plans of Muslims in the city. It also explains how Dr Hedgewar prioritised organizing Hindus to ensure that the community doesn't fall prey to such aggressions from outside and urged Hindus to overcome the feeling that they are 'alone'.


The then members of the RSS gathered information on how and when the Muslim goons would attack the Hindu areas of the city. Based on the information Anna Sohoni, the then head of physical training of the RSS trained cadres in defence as well as attack.


On September 4, 1927 on the auspicious occasion of Mahalakshmi poojan, the Muslims had planned a procession post noon. Most of the Hindus from the region enjoy ciesta post heavy lunch on that day. Also, the idols of Mahalakshmi are decorated with gold ornaments. There were plans to loot the ornaments also, states the book. However, the Muslim goons who had planned an attack on the Hindu locality in Mahal area of the city were taken by surprise when their aggression met with equally strong and quick retaliation.


Incidentally, the incidents of violence and arson on Sunday were reported from the same areas that were attacked 98 years ago.

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