Mysureans happy with cut in fuel prices

The Centre has reduced the levy by Rs 5 a litre on petrol and Rs 10 a litre on diesel

Mysureans are happy as prices of petrol and diesel came down from Rs 113.40 and Rs 104.01 to Rs 107.11 and Rs Rs 91.54 respectively on Thursday.

"Prices may fall on Friday," Manjesh Kumar, president of the Federation of Mysuru Petrol Traders, told DH.

The Centre reduced the levy by Rs 5 a litre on petrol and Rs 10 a litre on diesel. Karnataka reduced taxes by Rs 7 per litre on both, applicable from Friday.

Citizens are in favour of further cuts in price. They are aware that the price of Oil (Brent) is increasing over the past few months in the international market and more hikes are in the offing.

Harish Shenoy, an entrepreneur, said, "Like other commodities, the price of petrol and diesel has increased over the decades and there is nothing unusual about it."

“Between 1979 and 1986, the price of petrol increased by 110% from Rs 3.60 to Rs 8. Between 1986 and 1993, it increased by 120%, from Rs 8 to Rs 18. Between and 2000, it increased by 60%, from Rs 18 to Rs 28. Between 2000 and 2007, it increased by 70%, from Rs 28 to Rs 48. Between 2007 and 2014, it increased by 60%, from Rs 48 to Rs 77. Between and 2021, it has been the lowest increase of 32%, from Rs 77 to Rs 113. This comparison is divided into slots of seven years each. Over each of these seven years, there have been fluctuations,” he said.

Jagadish Chandra, another entrepreneur, said, "The value of money is measured in the value of gold at least in nations like India, where the quantum of currency printed equals the value of gold with the Reserve Bank of India. Compared to the analysis of petrol, the price of gold per gram in 1979 was Rs 93.7, while it is Rs 4,878 on Thursday. The price of gold has multiplied 52 times over this period of 42 years. However, the price of petrol has multiplied just 31.5 times, over the same period. Haven't the incomes of people increased over the decades and years?”

J Srikanth, an investor, said, "The price of oil in 1979 was $31.6 per barrel and it peaked at $111.63 in 2012. It was $83.16 on Thursday. However, the value of the US dollar has increased over the decades and we have to pay in devalued rupees. While the value of one dollar in 1980 was Rs 7.86, it has peaked to Rs 74.51 as on Thursday, almost 10 times. If the Indian government had bought oil at $31.6 in 1979, it would have paid just Rs 248.37 per barrel. However as on Thursday, the Centre pays Rs 6,196.25 per barrel of oil at the cost of $83.16.”