The fuel prices have been constantly rising for a quite a long period of time. The drop in prices is very meagre in terms of amount when compared with the amount which is being hiked every time. Tamil Nadu Chief Minister J Jayalalithaa strongly opposed the latest hike in fuel prices and asked for the revision of mechanism for fixing the diesel and petrol prices.
Usually the petrol and diesel rates are fixed according to changes in the international rates in fuel market. This method of fixing the diesel and petrol prices has been pointed by Tamil Nadu Chief Minister J Jayalalithaa to be a wrong method of determination of prices. Chief Minister of TN suggested that the prices of the fuel should be made from factors like cost of import and refining of crude oil.
Companies which market oil gain a large profit when the prices of the fuel are determined based on the international fuel market rates.
This article was posted on 01-Sep-2016.