After Sachin Tendulkar's 100th hundred,
the next 100 that is being talked about is the prices of petrol as
to when it will touch the three digit figure.
The race for this is on and the confirmation came on midnight 24th
May, when the central government announced the hike of petrol
prices to unbelievable Rs 7.54 per litter.
Petrol prices have risen from Rs 42 to Rs 76.35 in last three
years. The UPA government if goes by similar pace, in the next two
years when it completes its term (2014), the price of petrol would
certainly touch the century mark.
Petroleum Minister Jaipal Reddy, justifying the price hike said,
"India is facing the twin crisis of rupee devaluation against US
dollar and a substantial increase in the international prices of
crude oil. This is a global problem beyond anybody's control.
There is no instant solution to the problem."
Reddy added, "Petrol is deregulated... but during certain periods,
oil marketing companies were not able to raise prices of petrol,
because of which they have lost massively.. Our oil companies are
bleeding. Rs 2200 crore was lost only on petrol in the year
2010-11. Rs 4800 crore was lost in 2011-12 and in the last two
months, a loss of Rs 2330 crore was made. This amount has not been
compensated."
Government had deregulated the fuel in June, 2010 and Finance
Minister Pranab Mukherjee said the decision to increase the prices
was taken by oil marketing companies.
CPI (M) politburo member, Sita Ram Yechury disagrees. “The petrol
price increase is unwarranted because the international price of
crude has fallen. They have fallen more than the fall in the value
of the Indian rupee. Hence, there is no justification saying that
our imports have become expensive and prices are to be hiked,” he
said, and added that the government is serving the interest of oil
companies at the cost of the common man.
Tamil Nadu Chief Minister Jayalalithaa slammed the government on
the steep hike in petrol price saying. “It could have been avoided
by reducing the profit of the government as well as private run
oil companies, reducing the tax on petrol and checking the falling
rupee value.”
BJP dubbed the hike as "unreasonable." "If the Rupee is
depreciated, it is not the fault of the people. It is due to wrong
economic policies followed by UPA government," Party spokesperson
Prakash Javadekar said.
Shiv Sena Chief Bal Thackeray was more boisterous. “In the last
three years prices have been increased 16 times,” he claimed
liquor in India is now cheaper than petrol.
UPA allies were also unhappy with the petrol price hike. “It is
unjust and unilateral. We cannot accept the price hike burden on
the people," said West Bengal Chief Minister Mamata Banerjee.
Samajwadi Party chief Mulayam Singh Yadav asked the Centre to
check inflation and roll back petrol price hike. The DMK, urged
the central government to at least partially roll back the petrol
price. “The hike has imposed an additional burden on the people,”
it said.
The government is unrelenting and has refused to immediately
rollback the petrol price. Ruling out any rollback, Oil minister
Jaipal Reddy has assured that the government will take measures to
soothe impact of hike in petrol price.
Reddy indicated that there could be a reduction in petrol prices
in near future seeing downward trend in international crude oil
prices and hoped that center and states would reduce taxes on it.
Most of the states have 20% local levies on petrol and that can be
reduced, he said.
As the petrol prices canters towards Rs 100 mark, the common man
is feeling its impact on daily life. Its cascading effect is
telling on the markets, services and other sectors.
The prices of essential commodities have gone up, so are transport
fares. There is a general resentment among the people. How this
anger would translate, is something that needs to be seen.
It is likely that in near future the petrol prices may be reduced
by Rs 1. This projection is based on persistence of the downward
trend of the international crude oil prices in the Singapore bulk
market.
The government may take credit for this and placate its allies who
are demanding the roll back. However, in reality, it is helpless
to control such mayhem erupting every now and then.
Syed Ali Mujtaba is a journalist based in Chennai. He can be
contacted at syedalimujtaba@yahoo.com
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