Within 24 hours of state election results oil marketing companies increased petrol prices by Rs 5 a litre, the steepest ever hike. This is the seventh time in 11 months that petrol prices have gone up and are set to upset household budgets, already reeling under the burden of higher food costs and loan instalments.
And as if this was not enough, you may have to deal with Rs 4 hike in the price of diesel and cooking gas cylinders could cost Rs 25-50 more. The ministerial panel on fuels is expected to take a call on raising these prices next week.
Since UPA returned to power in May 2009, petrol prices have gone up by over 50%. In the last one year alone the increase is of the order of 30%.
On top of this milk producers have increased prices by Rs 2 a litre, while home loan player HDFC on Saturday joined the likes State Bank of India and ICICI Bank in increasing lending rates. HDFC raised rates by 50 basis points.
"It is very tough. Everything costs more, be it vegetables or milk. Mutton will soon be out of reach. This (petrol price) increase will put more burden on us," said Anshu Roy, a housewife living in Noida.
On their part, oil marketers argued that since the last revision on January 15, the mix of crude they buy has gone up to $118-119 a barrel, whereas the present pump price was tuned to around $95 a barrel. Petrol price was raised five months ago by Rs 2.52 per litre.
"We have been holding the price line for five months to avoid putting burden on consumers. Even now, we are passing only half the burden. We have been losing Rs 10.50 on a litre of petrol," R S Butola, chairman of India's biggest fuel retailer IndianOil Corporation, told TOI.
Butola said another revision was in the offing since higher crude prices and losses on fuel sales were forcing the company to borrow Rs 8,000 crore every month. "There's no option left. Our borrowings have exceeded Rs 67,000 crore...finances are under tremendous strain...the company can't go on."
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Price rise soon after elections was expected. This indicates blackmailing and fooling tactics of ruling ciurcles. The politicians go to people with cunningness in their mind. If petrol price rise is necessary, they should tell this frankly election or no election. But they will avoid taking any unpopular measure just before elections and wait till elections are over.
G. K. Ajmani Tax consultant http://gkajmani-mystraythoughts.blogspot.com/
The hike in price is a political decision as this was deferred till holding of elections in five states. It is also revealed that the Union Government could pass on the cess earned on petrol from increase in international crude to the oil companies. Then the prices need not have been increased. The opposition are asking for roll back of prices but Union Government is adamant as there are no elections in near future.
This is another example of how rude and selfish this politicians could be with the citizens. As soon as their matter is solved(elections) they are right back into their true colours...
