Fuel prices rising steadily

Ever since the New Year, fuel prices, i.e, petrol and diesel, have been on the rise to record levels. Prices have gone up to a level not witnessed in recent years. Thanks to the method of adjusting fuel prices every day, petroleum product companies have been inceasing prices at their will.

The reason put forward by companies is the increase in crude oil prices in the international market. When it comes to the tax element, which is a major component of the pump prices, the state government pleads for the Centre to reduce the tax first, while the latter says it will wait for state governments to reduce the tax. And both seem unwilling to budge in the matter. The result: over the past two weeks, there have been frequent one and two rupee increases for both petrol and diesel.

On Sunday, petrol in the state capital cost Rs 74.90 per litre, while diesel cost Rs 66.85 (against Rs 66.93 qand 58.28 respectively in July). In Kochi this was Rs 73. 60 and 65.59 respectively. These represent an increase of Rs 7.97 per litre for petrol and Rs 8.57 for diesel over a seven month period.

The rise in diesel price is feared to hit the common man more, as it will impact the freight charges of essential commodities, prompting an increase in their prices and that in turn increasing inflationary tendencies. And not surprisingly, some quarters have started clamouring for hiking transport charges of bus, taxi and auto.

An example of daily price increase in January can be seen in the table below: (Kochi)

Date	Petrol	Diesel
7 January	72.80	64.28
8 January	72.96	64.47
9 January	73.06	64.64
10 January	73.16	64.80
11 January	73.20	65.00
12 January	73.27	65.20
13 January	73.46	65.40
14 January	73.60	65.59