Petrol prices in India have increased by 15 per cent in the past twelve months, and 23 per cent in the past five years. Politicians don’t often protest against food inflation, or promise price reduction of life-saving drugs or increase in minimum wages. But political outrage over increase in fuel prices is very common. The political concern over fuel prices has little to do with the fact that Indians spend 5.7 per cent of their monthly income on petrol. They actually spend much higher proportions on housing and education (food: 52 per cent, rent: 12.1 per cent and education: 3.5 per cent). But the fact that there is a certain amount of control at the Central level in the calibration of oil prices excites those on the side of the Opposition.
Historical Price Trends
