Petrol and diesel prices have been increasing for quite a time now, as we see our government giving the reliance on helping the pandemic-stricken people of India, with major reliefs and services. The Union Government assured that the prices of fuels are not coming down anytime soon hence we can expect higher taxes on petrol and diesel for a longer time. Both the retail and wholesale inflation in fuel components have been rising rapidly in the last few months. The rise in fuel prices also affects the cost of other commodities via a cascading effect. Businesses that can take the load of these prices will go on smoothly while the ones who cannot, will have to take a hit on their profit margin. The smaller businesses are especially the ones who are to be more affected by this inflation in cost. Smaller businesses are more vulnerable to getting pressurized than larger ones. If the economic policymakers in India, explicitly keep on ignoring the majority of the population’s economic reality and get staggered by the economic condition of the higher 10%, the situation of the economy might get even worse by the time one gets to realize it. The economic recovery of India has been put into jeopardy with high fuel prices and increasing international crude oil rates. It has made the running of the households somewhat difficult in many areas. At this very time, India has the highest fuel prices given that it is the second-largest importer of oil in Asia. If the prices do not come down in anytime soon the economic condition of India can be in consolidated trouble as especially it is already under grave pressure due to the impact of the second Covid-19 wave.
High prices in fuel have not only had an impact on vehicle owners but also on the ones without personal vehicles as the price of the retail and essential commodities are sharply rising. Experts have warned that if the price of the fuel does not come down anytime soon, it can severely affect the economy. If the petrol and diesel prices remain the same or increase in the future it might have an impact on the market of these fuels as people might stop having a demand for these two essential fuels, ultimately hurting the government’s revenue collection system. It should be importantly considered that rising fuel prices also influence the price of other commodities like transport, delivery from different essential and daily sectors along with e-commerce. The cost borne by consumers for these services has been consistently rising as a result of the rising prices in fuel. The development in the recovery of the economy might become a big question if the government continues to avoid and ignore the rise in fuel prices. To do away with such scenarios the government should possibly take a stand for cutting down excise duty on various goods and services as it will provide some relief to the consumers in the coming days.
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