The hypocrisy of the Opposition narrative on fuel prices

    20-May-2022
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Hardeep S Puri
Since early-2020, Governments around the world have been in the throes of the COVID-19 pandemic, struggling to adapt to an evolving world order which is not of their making.
India has emerged among the most resilient countries – a reality that is reflected in the IMF’s latest growth projections that India will be the fastest-growing major economy in the world at 8.2% in 2022-23, compared to the global rate of 3.6% for the calendar year 2022.
India was able to turn the socio-economic difficulties posed by the pandemic into an opportunity thanks to the visionary initiatives of the Modi Government. Interventions such as the unprecedented Rs 20-lakh-crore ‘Aatmanirbhar Bharat package’ have ensured that the Nation plots a sustainable and inclusive economic recovery. The Indian Government continues to provide free ration to 80 crore Indian citizens; has administered 188 crore vaccines (at the time of writing); and has committed to investing Rs 111 lakh crore in the National Infrastructure Pipeline (NIP) to reignite core sectors of the economy. That this was done despite the curtailed revenues and significant assistance provided to State Governments speaks volumes of the Modi Government’s priorities.
The Government’s adherence to the ethos of responsible governance and cooperative federalism is reflected in the levels of financial support provided to State Governments despite 500 % increase in crude prices since the pandemic low and the volatility due to military actions in Ukraine. These factors put considerable burden on India as it imports almost 85% of its petroleum requirements.
Even as India is rapidly enhancing its renewable energy capabilities to offset foreign dependency, it must be recognised that more than 6 crore citizens purchase petroleum products at retail outlets every day. As the country’s economic growth gathers up pace and consumption continues to increase, per-capita demand for energy will be even higher in the medium-term until India transitions to a green economy. It is against this backdrop that one needs to consider whether governing entities are pulling in the same direction to ensure that the burden passed on to the Indian consumer is minimised.
Modi Government has ensured that price rise in petrol during its stewardship has been minimum possible. Between April 2021 and April 2022, petrol price rise in India, at 16%, was the lowest among the USA (50.6%), Canada (50.7%), Germany (50%), UK (58.9%), and France (33%). Similar differences in price rise are observed for diesel; India again has the lowest increase among all major Nations.
(To be contd)