Why govt is wrong that car, bike buyers are rich enough to afford high petrol, diesel prices

Key highlights:

• Petrol and diesel prices in India have reached at 3-year high on the back of higher taxes
• Alphons Kannanthanam said those who can afford to buy a car or bike can afford to buy petrol
• Two-wheelers currently outsell cars by more than 7 to 1

Petrol and diesel prices in the country have now record high levels despite crude oil prices falling. Both petrol and diesel prices in India have reached at 3-year high on the back of higher taxes being levied by the government. Even wholesale inflation in August rose to a 4-month high due to food and fuel prices.

But the government seems to be in no mood to reduce the prices on petrol or diesel by bring down the taxes, as Union Minister Alphons Kannanthanam on Saturday said those who can afford to buy a car or bike can afford to buy petrol.

“Who buys petrol? Somebody who has a car, bike; certainly he is not starving. Somebody who can afford to pay, has to pay,” said Kannanthanam, reported ANI.

Why is your petrol, diesel bill rising despite cheaper international crude?