News Reporting: Petrol and Diesel Prices are Rising Dangerously

 Petrol, diesel prices are rising but why govt does not look worried

Petrol and diesel prices have been rising to record high levels. Yet a divided and seemingly weak Opposition, multiple protests over ideological issues and a pandemic-hit economy seem to work favourably for the government on fuel price issue.

Petrol and diesel prices rose on Wednesday for the ninth consecutive day. Petrol and diesel prices have seen a rise 21 times in 2021, till now. Combined, the increase in the petrol and diesel prices has been roughly Rs 6 for the two fuels.

Petrol and diesel have been selling at record high levels but this spike in oil prices does not seem to worry the government. Petroleum Minister Dharmendra Pradhan has already ruled out the possibility of the government intervening to regulate petrol and diesel prices in order to check the cost of fuel.

Petrol, diesel pricing

Earlier, petrol and diesel prices used to be a tricky political issue for the government. Any increase in petrol and diesel prices led to a backlash against the government, and rising prices in the international market put an extra burden on the government's exchequer.

In 2010, the Manmohan Singh government deregulated petrol prices. In 2014, the Narendra Modi government deregulated diesel prices as well. Subsequently, the subsidy that the government used to pay to the oil marketing companies ended.

So technically, the petrol and diesel prices became dependent on international market rates. A rise in the prices of oil in the international market would lead to a corresponding increase in the prices of petrol and diesel, or vice versa.

In 2017, the government ended the practice of changing petrol and diesel prices every three months, allowing oil marketing companies to revise fuel rates daily.

Then why petrol, diesel didn't become cheaper in 2020?

Crude oil prices crashed in 2020 during the severest phase of the Covid-19 pandemic. But the prices of petrol and diesel did not come down in India.

The coronavirus pandemic led to a very strict lockdown in many countries including India. This led to an almost total closure of business activities. The revenue generation for the government practically dried up.

But during the same time, the government's expenditure went up sharply as it opened up its coffers to fund the fight against the pandemic and to provide relief to crores of migrants and the poor, who were the most adversely impacted by the coronavirus-induced lockdown.

Taxes including the GST, the corporate tax and income tax inflow had reduced. Revenue from liquor and petroleum was the principal income source for the government. To ensure its income flow remained intact, the government raised taxes on petrol and diesel in a way that the prices remained static while the government earned more money.

Are there any alternatives?

Now that the international crude oil prices have started rising again, fuel prices are rising in India. The government has an option of reducing taxes on petrol and diesel to bring the prices down. But it faces a dilemma.

If the government reduces taxation on petrol and diesel, its revenue will be impacted. To compensate, the government could have to increase direct tax on sectors that saw growth during the Covid-19 pandemic. But a direct tax may become politically counter-productive.

Secondly, any further reduction in revenue would widen the fiscal deficit gap. In a year, when the government is ready to borrow money for its capital expenditure, a widening fiscal deficit would ultimately make borrowing more expensive.

Weak Opposition

The fact that the BJP is in majority in the Lok Sabha and a ruling power in most of the states makes it easier for the Modi government to set a favourable narrative. At the same time, the Opposition is divided and the principal Opposition party, the Congress, appears to be weak.

The Congress and its leader Rahul Gandhi have been attacking the government over rising petrol prices. But most of the criticism has happened on social media with little support from the ground.

Another factor that seems to be easing the pressure on the government is a constant supply of narrative setting issues -- the anti-CAA agitation, the Ram temple issue, and the farmers' protest -- in recent months.

These issues have shifted the public debate to a larger question of the political ideology of the BJP and the RSS. Issues such as rising petrol and diesel prices, and unemployment have taken a backseat offering the government a little extra elbow room.

Last but not least, the Lok Sabha election is still more than three years away. The government had cut the excise duty on petrol and diesel by Rs 2 in 2018 -- a year before the Lok Sabha polls. But the excise duty on petrol increased by Rs 10 and on diesel by Rs 13 in May 2020 during the coronavirus pandemic.

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Covered by: Soumen Mandal, Dated: 7th July,2021

Film review: Andhadhun

Andhadhun Story: Residing in Pune, Aakash a blind pianist (Aayushmann Khurrana) is privy to an aftermath of a murder. His conscience urges him to report the crime he has technically not ‘witnessed’, but is there more to him than meets the eye?

Andhadhun Review: Sriram Raghavan is known for his knack of dishing out twisty neo-noir, and he lives up to his reputation with AndhaDhun — a dangerously wicked thriller with dollops of dark comedy. Very few filmmakers manage to crack this genre and Sriram is adept at it. His film smartly questions your faith in ‘seeing is believing’.

Honestly, blind protagonists make for scrumptious thrillers and Raghavan ensures he doesn’t miss a beat either. Inspired by a French short film L'Accordeur or The Piano Tuner (2010) by Olivier Treiner, AndhaDhun is a nerve-racking tale of fear, deceit and crime, that keeps you on the edge of your seat as it teases your mind. A ‘Scream’ (Hollywood slasher) scene in particular, acts as a classic jump scare.

Boasting of a brilliant screenplay and masterfully crafted narrative by Raghavan, the story’s audacious characters and constant twists, keep you riveted. Atmospheric and moody, an underlying fear of what lies ahead grips your imagination.
While the first half is replete with a blend of palpitating tension, suspense and comedy in classic Raghavan style, the second half slumps a bit. The plot gets a tad chaotic and convoluted as opposed to its terrific build-up. The long-winded conversation between characters slackens the pace and eases out the tension a bit, which you don’t expect at that point. However, a spectacular climax makes up for it.

Ayushmann Khurrana in the lead role is a revelation. While he lends that effortless ease to every role he portrays, AndaDhun is the most definitive role of his career so far, that proves his versatility. Tabu is outstanding as always in a conflicted role that expects her to be erratic, vulnerable and deceitful. Sairat (Marathi blockbuster) actress Chaya Kadam and Ashwini Kalsekar leave an impact. Yesteryear actor Anil Dhawan makes a memorable appearance and Amit Trivedi’s music gives an haunting edge to the film. The interesting background score adds as a perfect layer to the ongoing proceedings.

Open to various interpretations and unpredictable from beginning to end, AndhaDhun is an engaging thriller that keeps you on your toes and leaves you guessing all the way.

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Covered by - Soumen Mandal, Dated - 5th July,2021