If you are following world news, you will know that high oil prices have been a major cause for concern all over the world. Every nation is witnessing rising oil prices, and high fluctuations. Economic uncertainties have taken their tolls on world stock exchanges, with the Bombay Stock Exchange losing major percentage points every week. Its pretty much the same scene with other exchanges such as the New York Stock Exchange.
In a free market economy, a rise in prices is usually passed onto the consumers, but India is not a free market economy (despite what that visiting politician might tell you at that economic forum in that part of the world). So to protect the consumers, the government did not allow the state oil companies to raise oil prices, and thus they were forced to take a hit of billions of dollars, pushing them into a loss. And these are some of India's biggest PSU's we are talking about here.
Last week, the government finally realized that this can't be kept on like this, because it will run this companies into bankrupcy sooner than later. Of course, the brainless block of people that the Left are, they can't be expected to understand world economics. The country's economy can go to hell, as long as the people are not burdened. So they opposed any move to raise oil prices tooth and nail, but the PM finally said, enough, and fuck you guys, I am going to raise the prices. So the prices were raised, but then the Lefties went berserk, and given the fact that the Queen of India also thinks like the Left i.e. vote banks before anything else, the PM was under pressure instantly to call for a partial roll back. The only positive thing about this whole episode was that the PM was assertive in saying a full roll back couldn't be done, and then did call for a partial roll back, definitely on orders from the Congress headquarters.
Time for tough decisions
In the biggest-ever increase in fuel prices, the government on Monday raised the price of petrol by Rs 4 per litre and of diesel by Rs 2.
In the decision to hike prices of petrol and diesel lies an unmistakable message for the Left parties.
Sources close to Prime Minister Manmohan Singh told HT he felt that meeting high expectations from the 8.5 growth rate and sustaining several other positive indicators would not be possible without facing difficult situations head on. The result: the decision to raise petro prices in the face of the Left's opposition — underscored in a note it addressed to Singh on Monday, outlining measures other than a hike.
"The elections to state assemblies are over and the PM felt it was time to move forward," said a source. He said Singh decided not to kowtow to the communists' unreasonable demand, especially when the gap between domestic and international prices has left oil PSUs bleeding.
The sources said the Left Front partners had to decide whether they wanted a functional or a dysfunctional government. The PM accommodated them by holding back the decision on oil prices till the assembly polls. But they are not willing to concede anything in return.
Anticipating the Left's reaction to the hike and to avoid a direct face-off with his outside supporters, the PM, the sources said, had cancelled his visit to Kolkata next week to lay the foundation stone for the Indian Institute of Sciences.
-----------------------------------------------------
So thats the part of the fuel hike. The decision was to be taken months ago, but being a great democracy that India is, the government did not do so because of the upcoming state elections. So it was okay to let the public sector undertakings bleed by a few billion dollars than hurt your prospects in elections.
But like I said, elections or no elections, more of our politicians cannot be expected to know the ways of the rupee. They don't know about how an economy is run, and they couldn't care less. And the Empress of India seems to be in the same mould. So what happens next? Like every decision taken in India, there are calls to roll it back. How can i forget about the BJP's pitch for a rollback. I still stand by my view that their loss in the last national elections took their senses away, and now their main job as the opposition party is to oppose any economic liberalization proposed by the Government.
Cong asks Govt to cut fuel price hike
The Manmohan Singh government proposes, but Congress disposes. After months of consultations with the Left allies, the government on Monday decided to raise petrol price by Rs 4 and diesel by Rs 2 a litre, only to be told by Congress to reduce the quantum.
The decision, taken by the Cabinet despite a strike call from the Left and protests from the opposition BJP, is now poised to be moderated to the relief of motorists.
Congress leaders went into a huddle to discuss the issue after the decision to raise petrol and diesel prices was announced. They found the revision too steep and wanted it to be reduced. "We appreciate the government's compulsions, especially in view of flaring global crude and mounting losses of state-owned oil marketing companies. But we also feel the burden is going to be too high and should be reduced," party spokesman Rajeev Shukla said.
Party sources suggested a Rs 3 a litre hike in petrol and Re 1 a litre hike in diesel as "reasonable and acceptable to consumers". The opposition from Congress took the government by surprise. Before the Cabinet met, PMO sources had indicated that Manmohan Singh was all for it.
"The government has been sensitive to UPA chairperson Sonia Gandhi’s concerns about the impact of higher fuel prices on farmers and limited the hike in diesel to Rs 2 a litre." Congress' protest raises questions over the disparity between the party and the government and its attention to boundary management.
---------------------------------------------------
The Con'gress says that a Rs. 2 raise is reasonable, as opposed to the Rs. 4 set by the PM. I am sure they must have spent countless hours running financial calculations and measuring the economic impact of the fuel hike, or the lack of it. Just to clear things up, even Rs. 4 is not enough to bring the oil companies out of the red, but its a start.
The PM is a good man, but we know who runs the country. And I know that the Con'gress is still a slimy, calculating party that does not care about morals and ethics as long as the vote banks are being entertained. Teaming with the Commie traitors, they have time and time again opposed many economic decisions taken by the Prime Minister. I had such high hopes when Congress came to power, thinking Sonia Gandhi will be different, she is powerful and has class, but I was wrong. She is just one of them.
PM may agree to partial rollback of oil price hike
Despite the government’s disclaimers, Prime Minister Manmohan Singh may eventually agree to a partial rollback of fuel prices but only after discussing the matter at the next meeting of the Left-UPA coordination committee, which is likely to be held in the third week of the month.
Although the Congress and the Left parties are pressing the government to reconsider its decision, the BJP’s agitation plans have queered the pitch for the Centre. The government does not want to take any decision at this juncture as it would not like the BJP to grab any political mileage from this move.
It was stated that the government had taken a conscious decision to stand firm on the issue despite the fact that the Congress had also joined other political parties in seeking a partial rollback.
Congress sources said the Congress and the Left parties were well aware that a fuel price hike had become inevitable because of the spurt crude oil prices in the international market. The two were also sounded out by the government about the decision, which was held in abeyance on account of the assembly elections in Kerala and West Bengal following a request from the Left parties.
---------------------------------------------
Like i said, not that these monkeys are not aware of the repercussions of their actions.
No comments:
Post a Comment
Comments are welcome!