Long pending petrol hike is here finally. It has been playing hide & seek since 2 months. Firstly it was postponed due to the elections in 4 major states and then due to the pressure from the alliance party headed by Mamata didi. Well with today's hike in petrol the cost of petrol per liter here in Hyderabad is Rs.81.44 & 73.5 in delhi. A huge hike from 74 to 81.44. Damn this impotent government.
Root cause is simple, rupee value slide against dollar. The crude has been lingering about $110 to $118 since couple of months. With the rupee sliding against dollar since month and the rupee reaching its all time low of Rs.56 per dollar, the oil companies are left with no other choice than this steep hike huge hike. Though UPA knows that this move may turn up as suicide gesture where all their major allies are crying tears(may be crocodile tears) for the people but govt. is left with no choice. Oil companies have already bitten losses than they could swallow. Oil co's says yet another Rs7-Rs10 is still under recovery for petrol. Why is all this happening?
India needs one strong independent government to impose its policies and gowth strategies without compromise. The current govt. is UPA. An alliance of political parties has formed this govt. Then UPA has to keep its all allies happy. Mamata didi, Karunanidhi Appappa etc etc has to be kept happy and oblige their demands in what ever policy stands UPA takes. If any one of the allies pull back the support, UPA collapses and thats the end of govt. With somany complications & depedencies, will any govt. be in a place to take a independent tough decisions. And thats what is say, an impotent government equals to no stubborn policy stands.
No independent govt. in delhi means no strong policy reforms.
No policy reforms means no active investments(FIIs, FDIs etc).
No active investments means no economic growth.
No growth means rupee value decline.
Rupee value decline means fuel hike(in petrol hike context)
What ever is the reason, i feel, this hike should have been gradual instead of a steep hike of Rs.7.50. Because, people may tend to console each small increase in price hike but one steep hike cannot just be digested easily.
On a lighter note, i thank HONDA to delay my Honda Jazz delivery for 6 months & thus forcing me to go with Fiat Punto with diesel heart :)
Root cause is simple, rupee value slide against dollar. The crude has been lingering about $110 to $118 since couple of months. With the rupee sliding against dollar since month and the rupee reaching its all time low of Rs.56 per dollar, the oil companies are left with no other choice than this steep hike huge hike. Though UPA knows that this move may turn up as suicide gesture where all their major allies are crying tears(may be crocodile tears) for the people but govt. is left with no choice. Oil companies have already bitten losses than they could swallow. Oil co's says yet another Rs7-Rs10 is still under recovery for petrol. Why is all this happening?
India needs one strong independent government to impose its policies and gowth strategies without compromise. The current govt. is UPA. An alliance of political parties has formed this govt. Then UPA has to keep its all allies happy. Mamata didi, Karunanidhi Appappa etc etc has to be kept happy and oblige their demands in what ever policy stands UPA takes. If any one of the allies pull back the support, UPA collapses and thats the end of govt. With somany complications & depedencies, will any govt. be in a place to take a independent tough decisions. And thats what is say, an impotent government equals to no stubborn policy stands.
No independent govt. in delhi means no strong policy reforms.
No policy reforms means no active investments(FIIs, FDIs etc).
No active investments means no economic growth.
No growth means rupee value decline.
Rupee value decline means fuel hike(in petrol hike context)
What ever is the reason, i feel, this hike should have been gradual instead of a steep hike of Rs.7.50. Because, people may tend to console each small increase in price hike but one steep hike cannot just be digested easily.
On a lighter note, i thank HONDA to delay my Honda Jazz delivery for 6 months & thus forcing me to go with Fiat Punto with diesel heart :)
