Once again, the petrol price increased by the union govt. for whopping Rs. 7.50 in a single shot. It is directly hits the common man’s belly. According to their statement, petrol prices won’t impact the people because diesel prices are directly related to the public transport. Does it make a sense?. Who are using the two wheelers?. If they invent a bike which can run on Diesel would be best discovery of the century. It is obvious that petrol is mostly used by the common man for their two wheelers and petrol cars. If you are rich, you might have a diesel car, not affected by this price hike. huh!! good logic by the govt(!?).
The reason given by them for the price hike is depreciation in the rupee value. Why the rupee value is going down?. It is mainly because of the larger import than the export. It clearly shows that India is showing the negative growth in all the industries for the past few years. It make the foreign investors pull out their money from the Indian market and companies to invest in the safe place. It cause the further decline in the rupee value. If a govt. wants to stable their currency, they have to improve the economy by making reforms on the different industries. Sadly, most of the reforms are not at all passed because of the political matters.
It is not the first time they hiked the fuel prices. It happened over a long period of time and not it is in the not tolerable situation. I can bet, petrol price would touch Rs. 100 by end of this year if our govt. is not managing their finance properly. When the rupee value is increased, the subsidy for giving the fuel prices would go high. It makes the govt. to borrow more money from other countries. It results in paying the huge amount for interest alone, makes things worse.
One of my earlier posts, I have detailed out the principle behind the oil prices and why the govt. has deregulated the petrol prices. Thank God!! Diesel prices are not yet deregulated ! If that happens, every fortnight we can see the price hike for diesel prices. Read my previous article about Why the Oil price crisis in India?. It explains all the facts about the oil prices in India. I am no longer going to write about the oil price in this post!. Let them realize and stop it!
The below table shows the latest petrol prices (25-May-2012) with the break up of taxes levies from the customers.