The price of Petrol, Diesel and Cooking Gas has increased enormously and specially in the past few months, as can be seen in the above charts. The government says that the rise in fuel price is inevitable as they cannot manage any further subsidy. The import costs and production costs of the State owned oil companies are regularly going up and the government has no other alternative other than passing on the burden to the people. The government’s decision will rein in the fiscal deficit and free up revenues for other programmes and will help our oil companies to make profits. The timing of such price-rise announcements is very interesting; they are made after elections in some States or between scams and problems when life and future of the government/leaders seems comfortable.
Unfortunately our government cannot control the fallout of their hike, an uncontrollable inflation. The direct rise in Petrol and Diesel costs will affect every vehicle owner and the sharp price rise in the case of Cooking Gas will affect every common man’s pocket. All major sectors like Transport, Automobile, FMCG, Textiles and so on will get affected. As a result of every such increase in fuel cost, the price of all items starting from the early morning cup of coffee or tea to a nightcap would increase proportionately or mischievously. That is the price of vegetables, food grains, beverages, fruits, transportation and what not; nothing is exempted from some rate of increase. And unfortunately there is nothing the Government can do in this regard, other than being a silent onlooker to the suffering of its people and taking the blame, of which they are never bothered until next election time!
President Ronald Reagan once said: “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man.”
Naturally the common people of India are fuming!