The Indian Oil companies, today increased the Petrol price by about 6.28 rs, one of the biggest hikes ever occured in India after the price regulation authority was given to the Oil companies. This will result in a price rise of about 7.50 to 8.50 rs in different states of the country after adding the local taxes of the state. It’s the 14 th time, the oil companies have increased the price after they have been given the right to increase the price of petrol as per their wish. These companies are also planning to increase the price of diesel, kerosene and LPG in near future and also demanding that the present right of price regulation owned by the govt. should be given to them.
In India, almost 70% of our petroleum demands are met by imports. Only 30% are met by local production. A large amount of foreign exchange is used for the purchase of petroleum products mainly from Arab countries. The present reason for the price hike as stated by the petroleum companies are the hike in crude oil prices in international markets and steep increase in dollar price. The dollar has reached a record high of about 57rs and Indian economy is presently facing huge crisis. This has been confirmed by our finance minister Mr. Pranab Mukargee. His statement directs to the seriousness of the situation.
Though all the facts are been infront of us, but the govt cannot barely escape from the responsibility of this price hike. In a democratic country like India,were people elect their govt., its the responsibily of the govt to control price hikes,inflation etc. It’s for this a govt is elected. It’s the responsibilty of the govt to protect the people and stabilze its economy from political or economical crisis, which may arise due to global cues. We have to take examples from countries like US, which is trying to bring Buffet Act, which proposes for different tax systems for the rich and poor in country. The Obama govt. is trying to help the poor or middle class of the country. Such an action in a capitalist country like US have to be taken as an example by the rulers of socialist country like India to safe guard the interests of common man of India. It’s now seen that the policies of our govt are largely biased towards big corporates at the expance of laymen. The decisions of govt regarding the gas exploration in KG basin and decisions regarding spectrum issues reflect this policies of govt. In the spectrum issue, the supreme court had to give its verdict to cancell all the deals. This was a serious blow to an elected govt. of a country.
Also the opposition also has to play a vital role in controllling the govt and in its policy making. A strong opposition is truley a torch bearer for the govt. Also the allies of coalition govt plays a vital role. In our country though parties like NCP and Trinamul congress expressed their dissatisfaction on the issue of petrol price hike, they are not ready to withdraw the support given to UPA. This differences in their acts and policies have be considered seriously. This gives a clear indication that they needs to be in power rather than helping people. Also the congress have given clear indication to Mamta Banergee that they have the support of RJD and the Samajwadi Party.

In the present situation , we can expect an early general election before 2014 and it will surely be an evaluation of the UPA and its govt headed by Dr. Manmohan Singh.Today’s petrol price hike can be seen only as an instrument for fund gathering for introducing people friendly plans in next budget which could the last budget of the present UPA govt. It’s the comman trick of all political parties to introduce people friendly plans before elections. But this time, we will have to wait and see,whether it will work for UPA.

The author can be reached in Twitter as johnsiypparayil.

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