DYFI to protest organizing CHAKKA JAM to bring down petroleum prices

The Central Executive Committee of the Democratic Youth Federation of India strongly demands the central government to bring down the petroleum prices par with the falling international crude oil prices.

This decision taken by the UPA government to decontrol the domestic prices of the petrol and diesel to the international price of the crude oil caused increases of petrol prices in the country for more than fourteen times. The price of petrol on 25th of June 2010 was Rs. 47.93 per litre. After several jumps in chronological order it became 73.18 per liter in 23rd May 2012. It led to sky rocketing of the prices of essential commodities in our country.

International oil prices, now hit their lowest levels since 2009, while average U.S. gasoline prices are now at the lowest levels in four years. But, the steep fall in international crude prices is not being translated to the consumers in our country. The retail selling price of petrol per litre in Delhi is Rupees 61.33, when the international price of crude oil stands 52.69 dollar per barrel, due to the intervention of the central government to help private oil companies to make windfall profit.

When the control of prices (administered pricing mechanism) meant to protect consumers from the cascading effect of the oil prices, government introduced decontrolling system for pricing which paved the way for huge increase in the domestic prices of petrol that led to the price rise of essential commodities and inflation. When the international prices of crude oils makes a steep fall the government intervenes and control the domestic prices from falling which prevents public from enjoying the benefits and also help private oil companies to make huge profits.

It is difficult to find the exact data on the cost and tax components of different petroleum products, since the government is not open and the price fixation method is not transparent. The final price of fuel in India is largely composed of four components-the cost of raw crude oil price (roughly constitutes about 55 per cent), cost of refining (which accounts for almost 6 per cent of the final price), taxes like VAT, Excise, Cess and overhead costs like transportation, dealer charges etc..

The government has increased Excise duty of the petrol and diesel by Rs. 2 per litre with effect from 2nd January 2015. This is the third time since November that the government is increasing the duty which has kept the fall in local prices much smaller compared with international rates.

The CEC of DYFI strongly opposes this mischievous stand of the central government on the issue. The CEC calls upon all its units to protest against the government in order to force them to bring down the domestic oil prices. CEC calls for a ten minutes CHAKKA JAM, from 4.00 to 4.10 PM, in major cities and towns on 8th of January 2015.

Last modified on Monday, 02 November 2015 12:25
DYFI CEC

Address: 4974/2, Shivnagar, Karol Bagh, New Delhi - 110001

Phone: 011 - 28727212
E-Mail : dyficec@yahoo.co.in