Petrol Price Soared by 80 Paise per Litre in Delhi: Negative Impact on Indian Economy
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Petrol prices witnessed a significant hike of 80 paise per litre in Delhi on May 23, 2023. This recent increase marks the tenth upward revision since the resumption of rate adjustments on March 22, following a four-and-a-half-month hiatus.
Surge in Petrol Price and Diesel Prices
With this latest increase, the price of petrol in Delhi has reached ₹102.61 per litre. Similarly, the price of diesel has also been raised by 80 paise per litre and now stands at ₹93.87 per litre.
Factors Driving the Price Hike
The surge in petrol and diesel prices can be attributed to the escalating crude oil prices in the international market. Since the beginning of the year, the price of Brent crude oil has risen by over 40%.
Economic Ramifications
The escalating fuel prices are expected to have a detrimental impact on the Indian economy. The cost of transportation and other essential goods and services is likely to rise, potentially leading to inflation and increasing pressure on the government’s fiscal deficit.
Mitigating Measures
To counter the impact of rising fuel prices, the government has taken certain steps. It has provided subsidies on petrol and diesel to state-owned oil companies and has also raised the excise duty on these fuels.
However, these measures may not be sufficient to alleviate the burden on the common man. The government needs to implement further strategies to reduce the adverse effects of escalating fuel prices. This could involve considering a reduction in the excise duty on petrol and diesel or providing direct subsidies to consumers.
Concerns for the Indian Economy
The increasing fuel prices pose a significant concern for the Indian economy. In the upcoming months, their negative impact is anticipated to become more pronounced. It is imperative for the government to take decisive actions to mitigate the consequences of rising fuel prices and safeguard the interests of the common man.
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