Some observations on the recent petrol price hike

Posted in Uncategorized at 9:17 pm by Pirate Praveen

Price of petrol has been hiked by rupees 5 to around 70 per litre last Saturday midnight and diesel price is likely to be increased by 4 per litre and cooking gas price likely to go up by 30 rupees per cylinder. 8% increase is steepest petrol price rise ever with oil companies asking for even more. This hike will feed into spiraling of prices of all essential goods. This is going to give a serious blow to the common man. The most striking thing I felt in this petrol price hike is the timing of it. Government waited for polls in many states to conclude before announcing the hike, to me it looks like they expect people to forget about it by next election. I observed long queues in petrol stations before the price hike came to effect. My friend Shravan mentioned about ‘Out of Petrol’ boards at some stations and observed it as cheating to sell the stock next day at a higher price.

Currently we cross-subsidise diesel and natural gas (cooking gas) with higher prices for petrol. The thinking behind this move is that, diesel and natural gas affects common people and also its price has a big impact on prices of commodities. But SUVs and luxury cars run on diesel and that picture is changed now. But still the price hike poses questions about government’s spending priorities. There is also a green demand for spending more money on renewable energy sources like solar and wind instead of continuing to subsidise polluting and dangerous energy sources like coal, nuclear etc.

We are doing a cycle rally in Pune coming Saturday at 5:00pm from Deccan Corner. Join in and register your protest. It is organised by Lokayat, an activists collective fighting against all injustices in our society. Visit lokayat.org.in to know more about Lokayat and get involved.

Petrol price hike: What do you think should be done? – story by Rediff.com