Rising Oil Prices

Government of India in order to bring local oil prices in an accord with the international market increased the diesel prices last week after a long hiatus. Last time the petrol prices were raised just after the commencement of voting in five states, raising many eyebrows and doubting government intentions. The government cannot solely be blamed for the opportunistic behaviour, as every ruling party in the country has followed the same way of thinking. 

"When it comes to political opposition, the ideology matters less."

Never missing the chance to bully the government, the opposition parties throughout the county used the stand of the government to cry out loud against the union wrong economic policies and took out protest movements to show the unrest in the minds of people. Majority of the protest sites were in the states ruled by the opposition parties and in other places they disobeyed the local administration orders thus overall disrupting the normal life of people. 

Do such protests yield any result?

Should government roll back the oil price hike?

As already stated, such protests are politically motivated and have no or little public support. Such protests are not more than the demonstration of power by the opposition. And in the recent case it looks like the power of opposition has slipped only to the states being ruled by them. A call for the full day closure of the country hurts the country economic stature badly which subsequently adds to the inflation and burdens the tax-payer. So in no way whatsoever protests like the last week yield desired results. 

Government of India by increasing the oil prices at this crucial juncture added nails to its coffin. Yet, it seems to be a much thought of process. Economically it’s a move to provide some air of relief to the debt ridden oil companies. Politically government knows that none of the opposition party including the NDA is in a better situation to demand for early parliamentary elections which are scheduled for 2014. And the government cleverly knows the fact that the Indian voter if once bombarded with lavish pre-election promises forgives the past mistakes. If the government rolls back the price hike then it will again become a laughing stock before the opposition.

So what’s the solution?

Amazingly, the production of oil from the Middle East over the years has increased still the supply lacks far behind the demand. In my earlier post on the petrol price hike I wrote on how to limit your transportation cost and switching to eco-friendly ways while travelling. Use of public transports must be encouraged and private vehicles must only be used at when utmost desired. Bicycles prove to be the cheapest and eco-friendly mode of transportation for small distances. Use of public transports and bicycles will surely help in reducing the burden on the refineries and will somehow assist in saving the ailing environment.

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