The price of oil around the world has more than doubled in the last 12 months. In India we have largely been unaffected by it but that is all about to change. Petrol prices could go by RS 3.50 to about RS 10 in the coming days. Petrol prices going up will further push inflation in India. This petrol price rise may be the first of many to come in the future.
The price of oil stands above the 130$ mark and analyst it may reach the 200$ mark in the future. No one in the world had seen this coming and its timing could not be worse. Most of the nations in the world are already experiencing a sharp rise in inflation and this sudden rise in oil prices has further deteriorated the situation.
In India we have already begun to feel the pinch of inflation with rise food prices and now the oil price rise is going to hit us hard. The government is trying very hard not to hike petrol & diesel prices with elections due in a year. But losses that are being inflicted upon the public sector oil companies such as Indian oil, Hindustan petroleum and Bharat petroleum have forced the government to act.
The government recently conceded that a hike in the price of petrol and diesel was imminent. The question now is by how much ? The finance minister is reluctant to reduce the taxes imposed on the oil as it would drastically increase the annual fiscal deficit. But to impose the burden on the common man would be some thing unreasonable.
So now the question is when the price rise comes, how much will it be? I believe the it will depend on how much the finance minister is willing to compromise and how much the allies are willing to risk by passing the buck on to the common man.
We in India cannot shy away from this rise in oil prices, one way or the other we are going to pay more for petrol and diesel. To blame the government for it in my opinion is stupid and unreasonable. As this is a global phenomenon and it is beyond the control of our government.
And as far as the white house is concerned, I have only one thing to say in response to the statement "Many developing nations like India or China are having greatly increased demand, which obviously is having an impact on price"
Guys grow up and stop cribbing, first the food and now this too. Does competition make you uncomfortable??
But million dollar question is by how much? So lets wait and see what the wise men of India decide.
6 comments:
Actually, India and China really are the biggest reasons for the oil rise ... aren't we buying more cars than ever before?!
ha..gsk is beginning to sound like george bush now! My bro and his friends made a video recently. made for some interesting watching! check it out :) http://www.ireport.com/docs/DOC-29102
hah ... i wont be surprised if george bush didnt know that cars run on oil... but hey, what i said is not wrong...
@ r!@ - is this what u do all day, read peoples blogs??? :)
yes we are one of the reasons but bush doesn't have a problem selling the his automobiles here... but complains when we start buying oil to run them.
to get a better picture read this article http://news.bbc.co.uk/1/hi/business/7425489.stm
@ gsk - tell me something better to do and I'll do it. have run out of ideas! I get notified on google reader when any of you update your blogs :P making good use of google! hehe..
hahaha..GSK u have become a pro-american already..as if the cars in america run on water. and i believe every american owns an SUV which consumes more of oil. aint that a fact. they believe in taking a car even if it is 500 mts. aint like europe where they love to cycle.(even in amsterdam or paris)
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