Beginning from the end of December 2019 till today, the world is facing an issue that has made even the biggest superpower in the world fall prey to it. COVID 19 or CORONA VIRUS, though a small micro-organism has created such havoc and uncertainty that no one ever imagined.

The economies are locked for months and traveling cross borders even within the country seems a massive task. While people stayed in their homes for a long to avoid the spread of the virus, the fall caused a negative impact on the jobs and businesses as well.

Now, the economies are on the verge of recovering but in India, the fuel price hike is another great issue that is creating a whole lot of a problem. While the businesses are still recovering and salaried are earning 70% of what they used to earn, the increased fuel price is making people fall into the debt trap.

REASON FOR FUEL PRICE INCREASE

One of the major reasons for the fuel price hike is the fluctuations in the International market. India is one that imports the majority of the crude oil from the fulfillment of petroleum needs. Additionally, multiple layers of taxes are levied on the basic crude oil price to reach the retail price of fuel like petrol and diesel.

Excise duty, VAT, agent commission, refining cost, and a few other costs are the major additions done to the fuel price to reach the final price of petrol and diesel. 

If we look at the current situation, another major reason why the prices are not curbed according to the statement of the Union Minister for petroleum and natural gas and steel is that the government is currently using the funds for the welfare activities which make the process of bringing down the fuel price bit problematic.

ISSUES WITH FUEL PRICE HIKE 

The main issue linked to the fuel price hike is inflation. Fuel is linked to multiple economic activities like transportation, logistics, and various industries. Additionally, an increase in fuel price is directly linked to the increase in the price of gas. It leads to a rise in the household budget. 

WHY IS THIS HIKE A CONCERN?

The hike has been there for a long which has made the fuel price reach over 100 per liter at various locations. The price is always a concern but today when there is uncertainty in the market, businesses are thriving to grow, and employment opportunities are lacking while the income for those already working is reduced, the price hike is leading to an inevitable cycle of the debt trap.

If you are seeking a solution, then there is only one at the consumer end. Use judiciously, save systematically to the avoid debt trap turning into a death trap.