Plan to build on anti-government sentiment fuelled by petrol price hike
Seeking to build on the anti-government sentiment fuelled by the increase in petrol prices, the National Democratic Alliance has called a nationwide bandh for May 31.
The NDA's acting chairman and senior BJP leader L.K. Advani said the UPA government had run out of ideas on inflation management. The unprecedented increase would further add to the people's misery.
In New Delhi, NDA convener and JD(U) chief Sharad Yadav rejected the government's contention that it was the oil marketing companies that took the call, as the pricing of petroleum products was de-regulated. He wanted to know why the increase was not announced when Parliament was in session and why the companies jacked up the prices a day after the budget session ended.
Both Mr. Advani and Mr. Yadav said the government's “gross mismanagement” of the economy caused the current mess.
Dubbing the UPA government pro-rich and anti-poor, Mr. Yadav said: “The government has washed its hands of the price increase, but it would happen only when the government wanted. The government will increase the prices of diesel and LPG also after the presidential election gets over.”
Protests will continue: Mamata
Kolkata Staff Reporter writes:
A day after criticising the United Progressive Alliance (UPA) government for the petrol price increase and describing it as a unilateral decision, West Bengal Chief Minister and Trinamool Congress chief Mamata Banerjee on Thursday said her party would continue its protests over the issue.
“Whatever I had to say I said it yesterday. We stick to what we say. Our party organised a procession against the hike today. The protests will continue,” she told journalists at the State Secretariat.
Opposition leaders had hit out at Ms. Banerjee's comments stating that “she is taking the people for a ride.”
Trinamool rally
The Trinamool, the second biggest constituent of the UPA government, staged a rally in protest against the petrol price increase. It was led by Railway Minister Mukul Roy.
Hundreds of Trinamool supporters, along with senior party leaders, walked a five kilometre stretch from Hazra in the south of the city to Mayo Road. They carried placards demanding a rollback of the hike.
Trinamool leader and Transport Minister Madan Mitra, who participated in the protests, said: “We are the most important ally of the UPA, but we have not been consulted. We cannot accept this burden on the common people.”
Meanwhile, other political parties also held demonstrations against the price rise.
Bharatiya Janata Party workers put up road blocks in the busy Esplanade Dharamtala area and at Howrah Bridge, while representatives of the Socialist Unity Centre of India (Communist) staged a demonstration outside Raj Bhavan.
Keywords: petrol price, UPA government, nationwide bandh
One saving grace, I see along with huge hike in petrol prices, is that
people started thinking twice before taking their bike/car on to the
road. Make it a commitment to lower your petrol consumption and rely
on public transport, even if it is not so comfortable.(as far as
possible)
The serious point I want is make is that Government should abstain
from playing hide and seek with the public. reading all the comments
one can find there is some serious irregularities in petrol pricing.
For many years conventional wisdom has said that the whole world is controlled by the monied elite, or more recently by the huge multi-national corporations that seem to sometime control the very air we breathe. Now, new research by a team based in ETH-Zurich, Switzerland, has shown that what we’ve suspected all along, is apparently true. The team has uploaded their results onto the preprint server arXiv. UPA is controlled by Corporate crooks.We have to bear all price rise.
Rise in petrol price is necessity. We cannot afford it. This is the reason why India does not put its effort and money in finding out the alternative energy solution. In other countries, a good public transport allows people to abosrbe such high prices.However,India does not have fully operational public transport as well. It is like catch 22 situation. You have to solve one to get other sorted out. However, good governance could have implemented the projects in efficient manner. when time is good, government should push for right investment rather than popular scheme. We have small time of window to push for investment and reforms but democratic farce slows the system and we miss that window. Now we are facing reality of thos missing opportunities. can we push government for overall implementation of right policies where petrol price hike is only one of them. we need completer package of policies to be implemented at once to get best effect. People and public should go together.
We Indians must always get what we want, whether or not we can afford
it. It is always someone else who must foot the bill. So what if the
oil companies are running up huge losses and the govt is haemorrhaging
tax money in the form of subsidies. We don't want to pay more; why,
because we can't afford it! The Britishers are far richer, so let them
pay more for the same thing! The only problem is, the import costs
aren't going to reduce just because a poor country is buying. Does
anybody really think the UPA govt. had any choice in this? We just have
to put up with it now.
India cannot go on subsidizing the price of petrol. Money will have
to be eventually balanced. If the govt. loses money on petrol (let's
say by not taxing it), it will have to make up for the revenue loss
either by borrowing or by cutting down on investments like Military,
Education, Infrastructure etc. At the end of the day, money has to be
balanced. This may be un-intuitive for the common man, but this is
actually better for the poor and worse for the rich, because it is the
Rich that consume Petrol more than the poor. This is a way to force
the Rich to pay their share. Its tough times for us, but this
decision is a sound economic decision. Let's support the Govt. This is
good for the country in the long run.
Even when the government could have had some logic for deregulating
petrol prices the timing and the intent is questionable. If people have
noticed all the ministers and biggies of Congress have gone into a
hiding ever since the prices were suddenly raised.
I just want to know one thing form our learned prime minister that how come petrol in cheaper in the USA as compared to India. Is hike in petrol price happening only in India.
It is all tax tax and tax. So in a way we are paying high price to sustain life style of these politicians and officals.
Much higher subsidy is piven to rich people in the name of promotions. but when it comes to petrol govt has to be rational.
Just bull s#@t.
What Raghunathan said is absolutely correct. Due to many a political parties and divisions among people, We are not getting united to work hard for the progress of this great nation. First of all, our political leaders should think about the well being of the country instead of giving pretty political and personal goals foremost importance.Nowadays, in India there is no place for patriotism. Even common sense is not working here. When oil companies are making 49 cores loss per a day, how can We continue with subsidies anymore?Educated and employees should make others know the grim situation prevailing in the economic front and also educate people understand the importance of self and financial discipline to counter the evils of poverty and inequality. Governments (either central or state) should let off laxity and speed up concrete measures to gain confidence of the people and meet their aspirations.Otherwise, We can never compete with any developing nation, either big or small.
Govt's/Petroleum companies decision to implement the petrol price hike
is justifiable. The population which is going to be effected by this
hike are those who own cars and bikes and generally fall in the salary
bracket of above 5 lakh Rupees per year.Shelling out Rs 7 per litre
more for petrol ain't going to make much of a difference to there
pockets.
In addition to this what I must bring out is that Indians who have
left this country and are staying abroad may not compare the prices of
petrols in the country of their residence like the one written by Mr
Raghunathan. Comparing prices of Petrol which is at Rs 150 in london
to Rs 75 in Bangalore cant be justified as the money which he might be
earning there must not be less than 2000 to 3000 UK Puonds which
itself amounts to more than Rs 2lakh per month i.e. Rs 24 Lakh per
year. The ratio Rs 24 lakhs per year : Rs 5 lakh per year can not be
equated to Rs 150 per litre of petrol in London: Rs 75 per litre of
petrol Bangalore.
The government knew it very well that the opposition will oppose everything and for that reasn, they did not bring this issue in the Parliament. Whether, a matter affecting the poor and downtrodden or not, the left and right want to protest in their full throat. After all they held the government back from any form of governence for over a year. Whether the rupee will depreciate or the whole economy will fall flat on face or not, the opposition wants to have vote bank politics. Let them enjoy it. People must learn to use less petrol to counter the menace.
@Raghunathan,
Let Indian government give any single basic facility available in UK, I am ready to pay Rs.150/lr of petrol. In UK, you can drink tap water. Here, I need Rs.20 to get a litre of good drinking water. When the tax money is getting looted by Govt and Co itself, common men will go for freebies only.
@Raghunathan, research your purchasing power parity.
I for one,have had enough that fuel is so heavily taxed by the
government. The more fuel costs the better it is for the exchequer, and
where does it all go?
As a taxpayer, I have to do with bad infrastructure(roads, sanitation,
electricity, water), terrible public healthcare, expensive education,
oppressive policing, censored media, an inaccessible Judiciary,
environmental degradation for private profiteering and the list goes on.
The more I go on, the more this is going to sound like a rant. I think
that taxes on oil are way too high, and must come down. The government
needs to trim its fat, and put less of the tax payers money into their
own pocket.
Also, Prices of crude oil globally have fallen by about 10% in the span
of a month. Where is that being accounted for?
Point 1 :I don't understand why do indian government has to have so many layers of tax on scarce commodity like petrol. $90 at Barrel of
oil translates to Rs32/Litre.
Point 2 :I think time has to come to that India's lowers its dependence of oil from foreign countries.In that way it can at least it need not pay from its pocket to other countries. It can pass on the savings to the consumer. India should pursue its
oil exploration in south china sea and should definitely establish
a oil refinery there.
On Dec 1, 2011, Brent crude price was $109 per barrel. US$ was Rs. 51.4. Petrol price in Bangalore was Rs. 73.5. On May 23, 2012, Brent crude is selling at $105.6 per barrel. US$ is Rs. 56. Petrol sells now at Rs. 81.75. Based on the change in crude price and US$ exchange rate between Dec 1 and May 23, the petrol price should have been increased only by 5.5% to Rs. 77.6. The new rate is 11% higher. Why is the increase more than double of what is justified? Can anyone in the government explain the math behind the increase?
Dear raghunathan, Ur staying in UK earning in pounds, it is not big
burden for u to pay 150 RS/litre petrol their, but country like india
where democracy come family politics system playing most of the places,
Most part of the our country resources storing with some great indian
politics account.........How ur expecting common people earning 3K to
10K per month he can able to bear whole family responsibility with
this type hike in all most all items......This hike will indirectly
rises the traveling Fares, how common people will bear this load. Donot
compare UK with India where huge gap is there.
@Raghunathan - Don't you use Gas more than Petrol in vehicles ? How much does that cost ?
These "losses" the Govt. say the Cos. are making are fictional losses. The Net Actual Profit earned by these Cos. come to 1000s of Crores annually. Why should a Govt. Co. earn so much profit ? It just needs to have some marginal profit to run smoothly.
Look at Air India. Even after running at huge losses (actual) the Govt. is not increasing ticket charges, Why ? Because there is competition in that sector.
I'm not saying the Govt. should foot the entire bill. But they shouldn't use Fuel to get every penny out of the "Common Man".
It doesn't need more than common sense to know that oil prices are not
something India can control. Yet our Govt. is least bothered and ill-
prepared to minimise the effect of price volatility and the inflation.
If the Govt is really pro-democracy it should bring in safe and good
quality public transportation so that people can keep their private
vehicles at home and use the public facility.
Opposition parties should not talk about the "Common Man'. I live in
Karnataka ruled by an opposition party where the Petrol Prices at Rs
81/Litre are one of the highest in the country.
The real subsidy burden is from Diesel, LPG and Kerosene. It will be
interesting to see how the Govt can reduce this burden without
committing political hara-kiri.
Even in the 50s cost of car was less than Rs. 10000/-, it was a luxury only the rich could afford. In the late sixties while working as a gazetted officer in the central service, I could afford only bicycle and was happy with that.
While per capita income of middle class had increased many fold the cost of cars also had gone up along with it. True that as the country progressed, there has been increase in percentage of people who can afford cars. Nevertheless,Government cannot be blamed for the troubles of people who cannot afford such luxury, indulging in it. It is like some populist political leaders complaining that poor people are not able play golf as the a golf course is handled by the golf club and fighting for its take over by government.
We have over 60% BPL population. The govt's priority shall be to improve this lot instead spending money on subsidies on fuels for those who want cars but cannot afford it by themselves if govt. do not pay for part of their fuel cost.
Inability to control the petrol prices and the falling rupee are
result of failed policies of the govt but I genuinely do not think
that "protesting" and "bandh" is the way for the opposition to build
any credibility. At the time when investors are pulling out of the
country, the last thing we need is more instability and inertia and
these morons to be inciting such negativity in the public. Ridiculous
government subsidies on the basics post independence always hampered
our growth and "unless these intellectuals" in opposition have a
constructive solution to the inflation, they should just shut up and
let the common man get on with it.
We should not blame the Government for raising the prices of petrol.
But the real picture it accounts to only approx 15 % of the total oil
imports. What about Diesel?. The reality is in India right now there
are more diesel cars compare to petrol ones. Most of the rich have
diesel cars. The only class which is suffering is the middle class who
own either a two wheeler or a petrol four wheeler . In India nobody
bothers about middle class . They frame policies to help upper class
and give everything free to poor class. The middle class is the one
who pays taxes regularly and still do not get anything from return
from Government.
It is common sense for any educated person to understand that freebies are not good for any country if it has to grow. However, what is not understandable is how such huge hikes occur? If the government has indeed deregulated fuel price, as it keeps claiming over and over again, whenever cornered, why then does the fuel price not fluctuate like the rupee or gold on a day to day basis? The impact of such fluctuation will not be felt as much by the common man. The government blocks such fluctuations to meet its convenience and lets go at a "safe time" which results in such huge and abrupt increase. Is it a matter of sheer coincidence that oil companies increased prices some time ago by as much as Rs. 5 the next day after the UP voting? Is it a matter of sheer coincidence again that petrol prices see such a huge hike immediately after the last day of the parliamentary session. Whom is the government fooling when it says that oil pricing is deregulated?
Dear Raghunath,
We live in India and shall I ask what is your monthly salary in UK ?
Dear Raghunathan,
I really feel sorry on the comparison you have made, apples and oranges can not be compared.
The allowances or wages we get in UK are much different to what we get in India.
The consumption is more here as well.
there even the coffee cup is 150-300 Rs. water and beer bottle in same range.
The issue here is the policies of the government and steep hike in the prices.
It is saddening to see how everyone has subscribed to the subsidy related losses story of government. I am trying hard to find a trace of these losses in the annual results of OMCs. Fact is that government is hand in glove with OMCs (most owned by govt. itself) to make a fool out of common man. Why must government collect tax at a percentage of sale made that too upwards of 40%. Even in US where fuel is free of regulation, gas (petrol) sells for about Rs. 43 per liter. UPA government has perhaps realised that its hope for coming to power in next general election are moribund anyways, by a spate of inaction first and then such catastrophic measures with calculated timing now, they want to ensure that next alliance that comes to power spends most of its time in cleaning up the UPA mess and then UPA can cry from rooftops that new incumbants have not done anything. Shame afterall is not a jewel these politicians worry about.
There is no government commitment on safepublic transport, state capitals such as Bhopal, Raipur, Gauhati, Aizwal, Lucknow do not have any form on public transport, all of them rely on people travelling on their private vehicles to get to work. An escalation of petrol prices might be immenet but what are the states commitment to providing safe reliable transportation to masses. Why are people buying private cars, is dieselsation of the nation a good thing? are 60% cumulative taxes on a product un resonable, how do we get to our offices?
Yes we live in a market economy but not even 10% of the nation earns market driven salaries, we would appreciate some protection.
I agree increasing petrol prices was a must. But what irritates me is the difference between petrol and diesel prices. Petrol is around 72% expensive than diesel.
Mr. Raghunathan, I believe in UK, diesel is about 1.49 pounds/litre and petrol is around 1.41 pounds/litre. Please correct me if I am wrong.
And please dont call diesel as poor man's fuel. Poor man go by bus or train. A little less poorer like us ride a motorcycle or maximum afford a Alto, which runs on petrol. The richer people can shell out lakhs for bigger diesel driven sedan and SUVs. So, I am unsure why it is so unjust for us. Because we are not so rich to afford SUVs???
Ford sell 1 petrol car to 3 diesel car; Tata sell 1 petrol car to 19 diesel car; Volkwagen, Fiat all follow the suit. Maruti sell 1 petrol swift to 2 diesel ones. We cannot afford so expensive ones and stick to motorcycles - and cannot take advantage of "POOR MAN'S FUEL". A real comedy I would call.
Where is the subsidisation comes in. The percentage of tax component is 45%. Why the Geverment is not talking about it. What is the tax component in Gold and diamonds. It is robbing peter to pay paul. The UPA I & II are cheats. They ruined the country by appeasing the coalition partners.
People who are arguing that they are paying Rs 150 in UK and 200 in US , lack rational in argument(please take this in positive way).
In US/UK average household income is way above, having been lived in all three countries, I can say it hits hardest in India.
Just sit for a minute and give it a thought, how many hours do you need to work in US/UK on minimum wages to fill a liter of Gas/patrol ?
In India, going by government's own records 60% population (earning Rs 36-40 a day) would need to work 2 continuous days to buy a liter of Petrol.
Also, Those who are arguing that how long govt can take burden/provide subsidies ? well, sir please open your eyes and do some fact finding . Govt is not loosing but gaining 40% direct tax on fuel (Rs 40) and there are various loop holes even in this remaining cost of Rs 40 on how it's calculated. Well to a lay man, it should be obvious govt would not be running 3~5 companies for the same job if they were making loses.
I agree with the fact that government is doing the petrol hike just to remove the subsidy we are getting since long time. But my only concern is, will the money which government save after removing the subsidy is going to be used for development (in any kind) or will it go to the pockets of our politicians (any corrupt officials) ? Unfortunately, after thinking a lot about the public money utilization from our government, since i seriously tried to look into the issues, i don't feel liking giving extra money in our politicians hand.. :(
I feel helpless in this matter. Petrol hike is just one more blow for me :(
Living in the U.K is a nice option because you shell out only 2 pounds
or much less than that. In a country where the GDP per Ca pita is only
120000 rupees, what do you expect? Still the government is doing its
best to control steep shooting of crude oil price. But people have no
choice but to protest so they can save every penny. I also think you
do not understand the far reaching effects of a hike in petrol price.
It increases the price of just about everything else from commodities
to natural gas to food supplies extending to clothes, sanitary napkins
and even feeding bottles for children. You sir, sit in the U.K. where
there is welfare coverage for parents who are unemployed. A hike in
the price of petrol in U.K. does not affect the overall living
standard much. In a country with income disparities like nowhere,
every paisa means a lot. So please get off your moral high horse and
understand the issues better.
I think the situation calls for an analysis of the balancesheets of the oil marketing companies. One would easily note that the pay structure of their employees and the other benefits on offer are irrationaly higher than that of the employees in other fields. The pay structure and benefits that they follow were frozen at a time when the companies were enjoying Government subsidies. The situation calls for a cut back on the extras being enjoyed and efforts should be put in to make sure that the companies go as lean as possible so that their bottomline takes care of the crude oil fluctuations rather than increase in prices every time there is a fluctuation.
@all those who are outraged by price hike: Please enlighten us, with the soaring oil import cost in US dollars how does a country like India pay for this import without raising the petrol price? When Indian people buy cars they ought to also consider the price of petrol or diesel required to run the car on a daily basis. India cannot afford to keep on subsidizing cost of petrol or diesel without bankrupting the country. Why do you think the rupee is depreciating in value? It is primarily because India's exports are declining but its imports are not due to extravagant cost of oil and massive amount of import. India needs to consume less oil to have a sustainable economy and balance of payment situation. Govt also needs to raise the price of diesel sooner rather than later. People should be ready to pay the actual market price of petrol and diesel, otherwise the oil companies and eventually India would go bankrupt under the burden of subsidy.
The UPA Government of Manmohan Singh proves the proverb"Wolf in a
sheep's skin" Its crocodile tears for the poor and the downtrodden are
just an eye wash.UPA policies favour the Rich Class.Prime Minister
Manmohan Singh,s claim that UPA Government is helpless and it has to
accept the dictates of its Partners show that The UPA Government is
spineless.Numerous hike in Petrol prices have been seen in recent
times and yet the Government supports them.One cannot understand as to
why The Government does not encourage finding alternate sources of
energy for petrol and diesel knowing fully well that hikes in prices
are unbearable for commonman.If everyone is as rich as Manmohan Singh
and Montek Singh(Dy Chairman of Planning Commission) who always
supports every hike in fuel prices,ther won't be any need for
protests.Government Officials and Politicians both of Opposition and
Ruling Parties who get free fuel for their vehicles may not feel the
pinch of the steep hikes.
That is why we ask to use "Rath" for all "yatras" :-Advani on Petrol
hike..
Indians go in hordes to live in other countries and while living there
do not complain about paying for what they consume. Many of these
leaders have lived in other places and had no issues paying the market
determined prices. Then, why expect only the Indian government to pay
for the fuel one uses? I live in the UK and pay about Rs. 150 per
litre of petrol. How can the government pay the bill for a billion
people? It will only go bankrupt. until the culture of whining and
expecting freebies ends, India can never compete with China and other
emerging Asian economies.
Opposition parties at center and non-congress parties ruling in several states must and should raise their voice against this every increase this much on petrol in independent India. PM Manmohan Singh succeed as a FM in PVN period but faied as PM in his own administration to control inflammation and record lower of rupee against Dollar in the history. Most of recruitment surveys predicted that this year also there is no much expectancy in salary hike in the private sector despite inflation and other basic commodities price moving towards north. In such situation how middle class families manage their monthly expences not expanding their earnings. Government and policy makers should think these issues also before take any decision which could possible burning their calculated budget developed on their monthly earnings. Opposition parties and UPA alliance partners should raise their voice and disagree to this hike and put pressure on government to roll back. To this nationwide agitation
The UPA did not raise the matter in the Parliament because it knew the Opposition would torpedo such move by storming into the well and forcing adjournment instead of engaging in meaningful discussion with it. Petrol price hike to a large extent will hurt those owing cars and bikes and not necessarily the poorest of the poor as diesel price has not been deregulated and Kerosene price has not seen simultaneous hike. The government cannot carry the burden of subsidy in its shoulder forever and drain its resources in the process. I am not holding any brief for the government but I believe there are other ways to serve the poor well. Instead of providing blanket subsidy, we can be selective in our approach and charge them more who earn more and provide relief to those who are not that well off. We can also do away with the policy of giving tax-cuts to the rich that has accumulated to a whopping 21 lakh crore over the years and utilize that fund for alleviating poverty.
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