Oil trouble doubles…..

When the Central Government announced that it proposes to withdraw the subsidy cover over the petroleum products in a gradual manner, the heartbeats of common people have raced up towards north. The reason? Any increase in the prices of petroleum products will cascade the prices of essential commodities and thereby result in high prices.
Recently, the Government has increased the petroleum prices and proposes to increase them further. The lives of the common people who are very much dependant on the movement of goods can’t take any more burden on their shoulders especially with the prices of essential commodities like vegetables and other edible items already proving to be out of reach.
Already the middle-class, which is the most affected class, has narrowed down its savings budgets and is struggling to make their ends meet. If the proposed withdrawal of subsidy on LPG and petrol is taken away, the lives would be disrupted to abnormal extents and the result would be chaotic situation in the economic scene of the country.
Let’s hope the sane mind of our Prime Minister, who is an eminent economist too, works in favour of the middle class and do away the proposals which always appease the corporate world.
Krishna Chaitanya.
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About krshychait

A working individual who has a great passion towards arts of India. The literary and cinema field have captured my imagination like no other.

3 comments

  1. How long should the government babysit its people ? What is the point of subsidies and reservations when they haven't done any benefit in all these years. Time people became self dependent than crying for more help from their governments.

  2. Dear Anonymous, the Government is collecting two way taxes on sale of petroleum, first the Central Government tax and the states their own sales tax…We in Andhra Pradesh pay an extra 20 bucks for a litre of petrol…Talking of babysitting….Actually the governments are fooling us…If petrol is to be decentralised then these two way taxation should ggo…

  3. Anonymous

    1. India as a globally significant oil consumer: In 2008, India was the world‟s fifth largest consumer of crude oil and petroleum products, with product consumption growing by over 5 per cent. India is forecast to become the world‟s fourth largest oil consumer by 2025.

    2. The impact of oil-sector expenditures on budgetary stability: In fiscal year 2008-2009, „under-recoveries‟ accruing to India‟s state-owned Oil Marketing Companies (OMCs) – similar to the losses accumulated on product sold below cost – are expected to exceed $US40 billion.

    In March, ratings agency Standard & Poor‟s threatened to downgrade India‟s sovereign credit rating to „junk‟ status as a result of the ballooning of the Central budget deficit for 2008-2009 to 11.4 per cent of GDP (double the nominal 2007-2008 deficit), largely as a result of the Government‟s large-scale „off-budget‟ issuance of oil bonds.

    Current energy policy in India, therefore, has contributed tangibly to increased fragility and instability in India‟s Central Government finances.

    for more –
    http://www.hydrocarbons-technology.com/downloads/whitepapers/logistics-transport/file1102/

    Read it if you are serious about explaining to people.

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