Yesterday's news might not have been pleasing to many back in India. If it gave me a shiver, I can easily realise what it would do to an average earning guy supporting a family of four. It is really disheartening that government increases the financial burden on such souls so alarmingly.
I am talking about the fuel price hike. Rs 50 per cylinder for LPG and Rs 5 per litre for Petrol. It is the highest ever price hike I've ever seen, or rather highest ever that has happened.
We do reservations based on caste system, why the hell we can't implement a subsidy system based on household income. Why is it so difficult to implement a streamlined system such as in US to track and provide greater subsidy to the lower income families ? The problem lies in the bureaucracy itself, the corruption, the upper strata of the society. They remember the poor only when it comes to vote banks.
It is easy to imagine the catalytic effect this rise is going to have on transportation costs, food prices, and day-to-day expenses. It is becoming unimaginable to survive in a city like Delhi, where the average 4-member household income is Rs 5000. Kerosene is spared from the increase but still, lot of people survive on LPG. Global oil prices are around $130 a barrel currently and according to Goldman Sachs, it is expected to rise to around $141 a barrel by end of this year. God.
Economically speaking, state governments should implement tax and excise duty cuts on fuel prices and help the needy. I fear that day when there will be very less control over these prices. What will happen to such people ? Inflation is on the rise, it is already at a high of 8.1 percent, government can't continue to incur losses due to subsidies, and the COMMON man has to pay the price. It will hit 'em hard, very hard. What a life !
And if you do not know, 52 percent of oil prices in India are just duties and taxes. Wonderful, isn't it ?
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