Tag: price hike

Petrol price hike unjustified

Petrol price has gone up once again. There is no good reason for the hike. It is a myth that oil marketing companies decide the hike. When there were elections in four states and one union territory petrol price did not go up. The hike happened after voting was over. That time LPG price also went up.

The government says hike is inevitable because of increase in price of oil in international market. When the price comes down in international market petrol, diesel or LPG price does not come down. Then it is said there is subsidy for diesel, kerosene and LPG. The government’s manipulation of exchange rate has resulted in rupee being weak and common people having to pay a high price. When rupee appreciates against dollar the government buys dollars and keeps the value of rupee down. When rupee depreciates the government does not sell dollars and keep the value of rupee. It is done to favour exporters at the cost of 121 crore Indians.

USA prints about a trillion dollars every year and dumps them in the market. That should have brought down the value of dollar. However India has printed notes and when USA goes down India goes down even further. If India had not manipulated currency the prices of petrol, diesel, kerosene and LPG would have been about one tenth of what they are today.

PM Manmohan Singh he does not have a magic wand. You don’t need a magic wand. You have to do the right thing. DMK, NCP and TMC opposed price hike but no one has talked of currency manipulation that is the root of the problem.

Cut motion and government fall

Lok Sabha is in recess. Budget session will resume in April. Various parties have said they will bring cut motions against increase of petrol and diesel prices in budget. Government is firm in its refusal to rollback price hike. UPA allies have opposed price hike.
If a cut motion is passed the government falls. Many have commented that no party wants elections and cut motion will not be passed. Some parties may not like to vote with BJP. They are wrong. The unity shown by the parties on budget day may repeat. Left Front has said the price rise is not a political issue, it is a people’s issue. They will remind people that Congress voted with BJP to pull down V. P. Singh government. In politics there are no permanent friends or enemies.
It is not a question whether any party wants election or not. Sometimes things get out of hand. It happened in 1999. Just a year after election AIADMK withdrew support to Vajpayee government and the government lost the vote of confidence. Those who had hoped to form the government could not do so. Elections followed. The best laid plans of men and mice go awry.
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