Who is to blame?

It’s been just a month after petrol prices are up and its time now for his big brother and other siblings to grow. Diesel, LPG and Kerosene prices are up. This is only a 2nd hike for Diesel since 2010 whereas Petrol has already seen its 5th hike. Govt.of.India justifying this hike claiming that government owned oil companies cannot run on loss and they have reached a saturation point with the hike of crude oil in the international market.

Why is Crude oil priced high? Is it due to the gap between the two normal Economic terms Supply and Demand? May be each and every developed nation trying to strengthen their defense in army or even United states killing Osama has an adverse effect on oil price??? But it is clear that no one has a definite reason for this and each country / person has their own views and providing reasons to prove their market analysis skills.

We already knew the costs behind refining the crude oil and government taxes on oil. But how much is the government spending on subsidy? An advertisement by Ministry of Petroleum and Natural Gas in Sunday edition of THE HINDU claims that Government is about to face Rs.66,000 crore loss in terms of providing subsidy in spite of an increase of Rs.3 per litre in price of diesel and reducing duties.

The same ad states that Rs.71,297 crore has been given as subsidy to the Government oil companies last year. The point to note here is that the subsidy was provided to enable the Oil PSUs to post minimal profit. But where is the profit and how is the profit used by these companies when these PSUs are always crying losses?? The saddest part is Government is trying convincing the people of India by stating that kerosene and LPG prices are almost 50% lesser on an average than that of our neighboring countries. What if each and every individual in the country starts comparing the government with the benefits the people get in other countries from their government? Is there and answer available with our government?

Hardly an year back IT industry faced recession, many companies controlled their costs in several ways and even most of techies bravely threw their salary (willingly or unwillingly), layoffs, perks and other benefits down just to save the industry. Now the world says IT industry in back!!! How many managements of this Government owned oil companies are ready to cut their operating costs? At least the manager cadre is ready to throw out their petrol allowance or laundry allowance?

But why should they give up all these just for the sake aam aadhmi and in one way they are Aam aadhmi too…
Talking about the common man that is WE THE PEOPLE, if this rise is purely supply and demand why don’t the common man try to share the government’s burden after all it is our government and our country. But what is stopping us from Car pooling, bicycling, and using public transports orany other alternate means?

It’s easy to criticize the government and at the same time to criticize the oil companies or any individual. But why all the innovations / steps we make is getting failed here where as they are big hit in other Asian countries like China, Japan.

By the time you read this, at least the vegetable price in the shop nearby would have gone up. We have to live with it which we are used to but with one question always in the mind – WHO IS TO BLAME?

Author: vsimbhu