Wednesday, June 4, 2008

Why fuel price hike is not convincing

The increase in fuel prices today morning was expected. Even the extent of the hike -- Rs 5 petrol, Rs 3 for diesel and Rs 50 for LPG -- wasn't so much of a surprise, though it is the single biggest hike so far, I think. We do understand the compulsions of the government, that global prices have gone up, our oil companies are going bankrupt etc. We also realise that we must take effort to reduce consumption of fuel.

That's all fine. But if the efforts of the government has to be convincing, it has to lead by example. Government agencies are big spenders, and they are completely unchecked. There is practically no accountability.

Tonight Prime Minister Manmohan will address the nation to explain why fuel prices were hiked. Hopefully he will spell out the austerity measures that the government plans to put in place to tide over the crisis.

Let it not be a case of only the people bearing the cross. Let the mammoth government agencies, departments and ministries also take steps to reduce consumption of fuel. Or the whole things is going to backfire badly on the Congress.



  1. Pradeep
    I am with you in this high hope!
    Let austerity begin at every home and every workplace, with 'leaders' showing the way.

  2. I think thats a very important point that you have made. Not only that, even a simple pollution check is missing in majority of Govt vehicles. On the other hand, we do have KSRTC taking the initiative, way back in 2006 that kind of, nullifies, the fuel hike.

  3. Pradeep, you raise a very important point. While hiking fuel prices does (seem to) stabilize the economy, the leaders need to lead as well -- tell the common man how to help themselves, how to change the statistics.

    Thanks for dropping by at my blog. Keep visiting! :)