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Journalism of Courage
The sale of diesel in Punjab in the first three weeks of February, when canvassing for the February 20 polls was at its peak, was less compared to the corresponding period last year, with experts blaming it on ban on the big rallies during the Assembly elections till the first week of the month.
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The sales, however, picked up post March 7, the day the multi-phase elections in five states got over, amid speculation that the fuel prices will surge amid a much needed correction vis a vis international crude prices. Since June 2017, fuel prices are to be adjusted daily in line with the benchmark international rate in the preceding 15 days. But rates have been on the freeze since November 4, 2021.
Figures sourced from government owned petroleum companies reveal that last year during February, 3,28,400 kilo liter (KL) diesel was sold in Punjab, which included 2,18,800 KL sold from February 1 to till 21 and 1,09,600 KL in the last week.
This year the total sale of diesel was marginally higher at 3,59,500 KL. Punjab, however, bought only 1,73,600 KL diesel in the first three weeks of February, and 1,85,900 KL in the last week. Thus, the diesel sales in the last week of February — 22 to 28 — this year witnessed a 7 per cent increase over the collective figure for the first three weeks.
A week-wise break up revealed that this year there was 48 per cent drop in the diesel sale in the week 1-7 when the election campaign was at its peak in the state as only 28,000 KL was sold compared to 54,700 KL in corresponding period last year.
In second week of February (8-14), 54,900 KL diesel was sold against 54,700 KL last year in the same period. In the third week, (15-21), when the election campaign concluded, 90,700 KL diesel was sold against 1.09 lakh KL last year.
In other words, diesel sale in first three weeks of February this year was 21% lower than the last year.
Behind the surge in the last week
Punjab records a sharp rise in diesel sale beginning end of March, ahead of the harvesting of wheat which starts from April. The farmers start stocking up diesel as most of the machinery, including tractors and combine harvesters, run on the fossil fuel. “But this time farmers started stocking it immediately after the polls ended amid fears that Centre will hike the diesel prices, which have been on freeze for four months, post elections. Moreover, farmers are also looking at the geopolitical tension in Ukraine,” said Monty Sehgal, spokesperson, Petrol Pump Dealer Association of Punjab.
A big farmer, who is doing farming on 125 acres, said that he has stocked up diesel worth Rs 50,000 ahead of harvesting season while several of his fellow farmers are stocking up as per their requirement.
The freeze on fuel rates, in November 2021, had come just after the Centre cut excise duty on petrol by Rs 5 per litre and that on diesel by Rs 10 a litre, to bring down rates from record-high levels. Most state governments too lowered local sales tax or VAT.
Sources in oil companies says that the fuel prices need to be corrected by Rs 15 per litre.
