The shock and anger ran through the nerves of billions of Indians when Indian government hiked the diesel prices, kerosene and LPG by Rs. 3, Rs. 2 and Rs. 50 respectively. With these rate hikes, the government targeted all sections of the economy – poor people would have to bear the kerosene prices’ hike, middle men would be poorer Rs. 50 every time they buy a cylinder of Liquified Petroleum Gas (LPG) and transporters would have to shell out more for filling their oil tanks. Most likely, they would pass the buck to end consumers; thus, biting them even harder. And, affluent riders especially of Sports Utility Vehicles (SUVs) would also face the wrath; but this would hardly be any game changer for them.
We call it as a life cycle – Consumer to Consumer riding across the circle of life and reaching the same destination.
Is the price hike justified?
No doubt the international crude oil prices have gone off the roofs, thanks to unrest in MENA regions and growing demands across the world. In India, the oil prices are administered and decided by the government. The freeing of Petrol prices has already sent the petrol price beyond the affordability. The hike of other dependent fuels was long awaited and now it is being passed.
In a situation where the country has been going through various governance issues including series of scandals which have hurt India’s image internationally, the recent price hike would hurt the domestic consumers. The ‘aam aadmi’ is being targeted. While the various social security programmes have increased the purchasing power of end users, the recent hikes would empty their pockets. So, the question arises – is it justified for the Government of India to dole out various employment related sops during various elections’ times and increasing the price of basic needs of Indians. The government must answer – why the policy is towards benefitting private companies? Are we moving towards a capitalist economy? We have already killed the maharajas of India – Air India by doling out the lucrative destinations to private airlines and ditto with oil companies where lot many sops have been provided.
Cost-benefit analysis
It is estimated that roughly Rs. 21,000 crore would be added to state coffers in one swift. Most likely, the public transport, truckers, retail manufacturers using road transport in a large, railways et al would pass the buck to retail consumers, thus, bending the consumers’ backbone further.
We are going through a very rough phase of our life – a series of scandals have already dented India’s image plus common persons are already overburdened with the wrath of various government policies which have benefitted more to private capitalists instead of social consumers. Hope India would rise! We would eagerly wait for the FTD (Fast till Death) on Aug 16; no need to mention why this date is very important to all Indians!
Good Luck Indians!
Happy Reading!
