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      Fuel price changes in India over the last 25 years

      Nikhil Puthran

      Nikhil Puthran

      We can understand the pain you go through when you step out of the house, take a glance at your car and put back the keys in your pocket! As per sources, fuel price in India has grown from around Rs. 8 – 10 per liter to over Rs. 80 in last 25 years. Driving around in your personal vehicle has become a luxury in modern day. Continuous raise in petrol prices by Fuel retailers has put the country on the highest list to battle against inflation.

      Fuel price changes in India over the last 25 years
      Fuel price changes in India over the last 25 years
       

      Time and again, the central government has been held responsible for failing to implement major structural reforms to control rapid inflation, which has hit hundreds of millions of Indian population. The reason often justified by the government, as the need of the hour owing to global surge in crude oil prices. Fuel prices have steadily escalated in last two decades , due to factors like, regularly based sales tax revisions, effective retail price of crude and increase in local levies.

      As per sources, on April 1, 1989, petrol prices were at Rs. 8.50, kerosene at Rs. 2.25, diesel at Rs. 3.50 and LPG at Rs. 57.60. The prices were something that shall remain as a memory in minds of the current generation and the future ones may consider it to be mythological figures! With a rise of new millennium the year 2000 saw a huge jump in LPG prices from Rs 146 to Rs 196.55, which was unbelievably to the tune of almost Rs 50. This was followed by a Rs 36 hike in next five months, bringing it to Rs 232.25.

      The oil ministry calculated higher prices will generate revenue to the tune of more than half of the losses made by state-run oil marketing firms. Reports suggest that the marketing firms accrued to about $ 11.4 billion in the year ending March 31, 2011. It is anticipated that the increased fuel price can bring direct benefits to the government.

      For now, and for many years to come, the prices of fuel cannot be expected to come down. Currently, the situation is such that people have been looking for cars that provide better mileage and reduce their running costs. CNG being the freshest alternative, is being widely preferred. Moreover, car-makers have been investing considerable amount of time in developing electric cars for the masses. The future is definitely uncertain, but keep your fingers crossed to be blessed with an alternative sometime soon!