New Delhi sources have stated that Modi benefited massively from continuing this policy because the moment he came into office in May 2014, global oil prices began to crash. This meant that the government could raise prices at the pump or keep them about the same, while soaking up ever more revenue from taxes on petrol. Accordingly it is those taxes that have paid for the government's expenditure, and its ability to keep on meeting Chidambaram's fiscal deficit targets.
Moreover in other words, the government's constant declaration that it has stabilized the foundering economy that it inherited is based almost entirely on its fuel price bonanza. High taxes on petrol are an important component of its macro-economic strategy.
Sources have added that to be frank, anyone who
actually pays for their own petrol is probably voting for Modi or Congress anyway
in 2019. Pradhan, the BJP's IT cell, and so on, should just ignore the
complaining. Better still, they should instead make the argument that high
petrol taxes are important to India, and important to India's future.
