Fuel price progress

Kerosene is the only product consumed by and large the rural poor for lighting. Diesel consumption is mostly related to agriculture, drinking water and transport sectors. Thankfully the government is planning for some subsidy for agriculture. However Octane, the fuel for the well to do, is mostly consumed in urban areas where the rich live. Paradoxically it has been taxed the least!

Can we cynically conclude that the rich look after the rich? After all, those who fix the prices are the same people who ride on sedan cars that consume most of the Octane, as well as Petrol as we go down the hierarchy. Diesel is by and large a rural fuel used for irrigation, tube-wells (drinking water) engine boats, husking engines and some power generation, while Kerosene use is exclusively rural. Some Diesel is also used for transportation both in rural and urban areas, generally used by the poor and middle class society.

Analysing the table we find that fuel price growth for the poor has been between 61.3 to 68.0 percent, while the richer section faces a growth of 52.2 percent and only 40% for the richest! Makes interesting reading, trust statistics! No wonder the general opinion is that the "Rich are getting richer, and the poor poorer".