The Bangalore Metro Reporter
THE BURNING FUEL
PETROL PRICE HIKE SQUEEZES THE AAM ADMI.
Ever since the UPA-2 government came to office, there is no stoppage of price increase. The Rs.7.50 increase per litre in addition to state taxes finally has made the hike more than 8.50 per litre. Besides, the government has also hinted at similar huge increase in the price of Diesel and cooking gas. With this increase, the UPA government has increased the price of petrol by more than Rs.22 per litre since 2011.
The steep hike has shocked the common people to no end.
This steep hike of petrol price is being defended on the pretext that the oil companies are suffering loss which stands at Rs. 78000 crores as on May 15th! However, the government stated that it is the sliding of rupee against dollar and the increase in the prices of petrol in the International market! But, the irony is that international prices are on the downward Journey in the last one month!
Apparently, the oil companies are crying ‘loss’ when actually they are making profits, year after year. Earlier, when the government controlled the prices of petrol and diesel, the price rise was a difficult option. During the UPA-1 regime backed by the left front, price hike was only nominal because the left parties never allowed the government to hike the prices as per its whims and fancies. Many times, the left parties forced the government to abandon the price hike or reduce the customs - excise duty on crude oil. At one point of time around 2007, the government hiked the price by Rs.2 per litre when the international prices were hovering around 130-140 dollars per week with an assurance that this price will be taken as a base for further hike or reduction. Very soon, the government decontrolled petroleum prices and gave full liberty to the oil companies to review and revise the prices, once in a fortnight. The present international petrol rate is 98 dollars per barrel.
Despite the hulla bullo about the rising prices and incurring heavy losses, the oil companies have continued to make profits. Not even a single government owned Oil Company is running under loss. To put it bluntly, the so called ‘huge losses’ is only a ruse to increase the profits, more than covering the losses. With the left losing its control in UPA-2, it is the regional parties that have become the part and parcel of UPA-2.
And no regional party in the UPA-2 is prepared to oppose the unnecessary price hike. Even Mamata Bannerji, the WB Chief Minister who dismissed her nominee in the UPA-2 for having increased the passenger fare by 2 paise per Km had no guts to oppose the unprecedented hike in the petrol. M.Karunandhi, also is not prepared to block the price hike. Only some symbolic statements were given by the UPA allies in condemning the price hike. The main opposition BJP is no different. The price of petrol in Bangalore is the highest in India, almost Rs.4-5 per litre compared to other states and Karnataka is ruled by the BJP.
It is true the sliding of the rupee may be one of the reasons for the hike. In the last fifteen days, the dollar has gained almost seven rupees from the previous Rs.49/-, but who is responsible for this slide after all? It is the duty of the government to prevent such slides through corrective actions. But, the Finance Minister Pranab Mukherji is 80 plus and has no time for looking after the ministry as he is tipped to become the President. The Petroleum Ministers in the past and present were always busy giving indication of price hike and after much stage managed shows used to defend the hike in the name of economic stability.
Arguably, if the government increases the price of diesel and cooking gas, it will be hell for the common man. With the last increase in diesel and cooking gas rates, the country witnessed all round increase of almost 20% in the prices of essential commodities etc. A cup of coffee which used to cost Rs.4 to 5 just six months back is now less than Rs.10. Idli which used to cost Rs.4 now costs Rs.12! The rates of Vegetable, pulses, oil etc. have increased by leaps and bound. If there is one more increase, it will be intolerable to aam admi.
In that event, one hopes against hope that the UPA government falls and elections held immediately. While the common man is bombarded with price hikes etc., one hears about lakhs of crores of rupees siphoned off in 2G spectrum, Scam, CWG scam, Tatra deals, coal Mines, illegal mining, granite deals etc. If, even 10% of the ‘scam money is recovered, there may not be any more taxes on the people. Coupled with this, is the stashing of lakhs of crores rupees in Swiss Banks by the corrupt politicians bureaucrats and others.
To put it simply, India is fast moving towards becoming a become banana republic.
That is all.
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