Petroleum Secretary: Fuel Price hike 'inevitable'
The UPA government, under fire from several quarters over the rising inflation and sky-rocketing food prices, may be forced to take another unpopular decision of hiking the petrol and diesel prices within the next 3/4 days. The Petroleum Secretary, MS Srinivasan has told the press that price hike has become inevitable and the government has no option but to go for it. A final decision in this regard, will be taken by the Union Cabinet.According to the Petroleum Secretary, the oil companies will suffer a loss of Rs 2 lakh crore in FY09. The global crude oil prices already reached $135 a barrel, causing heavy loss to the oil companies. the Petroleum ministry is seeking a scrapping of import duty on crude oil and a reduction in customs duty on petrol and diesel to 2.5 percent from 7.5 percent in a bid to ease losses at state-run retailers.
In addition, the ministry is seeking a hike of Rs 10 in petrol prices and a Rs 5 hike in diesel prices. There will be panic and chaos all around if the government decides to hike the oil prices to such an extent. Will the government afford this with the general elections are schedule in a year?
posted by Admin @ 12:04 PM
1 comments
1 Comments:
Fuel price hike is to make richer more rich and poor to beg
The fuel price increase was mandatory however this fuel price increase will not help nation and aam aadmi. Custom duty cut will help Reliance (Mukesh Ambani) who import crude and sells product out side of India. Increase in fuel prices will increase adulteration & misuse of kerosene/domestic gas. Subsidy on kerosene will benefit to rich man instead of poor man. Kerosene subsidy is not truly benefiting poor because 80 % of kerosene and more than 50 % of domestic LPG is used in black market. Government due to popularity not increasing kerosene price however this popularity measure indirectly burdening poor man more than what the benefit is given in subsidy on kerosene. Does diesel price woun’t affect Aam Adami it affects more due to rise in every product cost. Means poor man is paying double, one by recovery of subsidy of kerosene in diesel petrol price and another on kerosene which is used by richer segments. Hence if we really meant poors benefits remove all subsidies and get kerosene and diesel at same price. So strike and demand of people should for removing subsidy which will help nations development.
Post a Comment
Links to this post:
Create a Link
<< Home