If this had happened, the petrol price would have set us back by INR 90 for a liter when the crude oil touched $150 per barrel.
In India, Petrol and Diesel prices are subsidized so that common man can affort it. But a free market will mean boom for petrol companies than for the Common man. With food prices already sky high, this would add much to the misery of a Common man. He would have more burden to share and more hours to put at his work.
Issues with the Common Man
- Poor Salary rise in the wake of recent recession
- Hikes ranging from 4% of CTC to just 5% of Basic salary component.
- Saving rate down by 23% (an estimate based on my own calculations)
- Prices of Essential commodities have increased
- Food prices increased; sugar, toor dal etc. heavily affected
- Job security issues
- Limited spending – which in turn effects the overall economy.
All this is just a small snippet of what could be a much more worse scenario. Why the sudden price hike is being debated madly between the names that be, but over all scenario has put all the politicians to blame.
Its been circulated in the internet media that politicians are using this price manipulation technique to fill up their coffers and also to ensure their votebank also stays loyal.