Fuel price rise haunts us again

     Its been a common seen now a days to see huge rush at petrol bunks. People flood the bunks with the news of the fuel price hike, to fill the fuel their tanks and same some buck. Least are they bothered about the extra money they have to shell out for the same fuel after the price hike.

     Reserve Bank of India has urged Indian Government to immediately hike the prices of petroleum products. According to RBI, the subsidies given to petroleum products is increasing the fiscal deficit, with could potentially damage the country’s financial health.

Here is the letter from RBI Governor Mr Duvvuri Subba Rao
The critical assumption that petroleum and fertiliser subsidies would be capped is bound to be seriously tested at prevailing crude oil prices. Even though an adjustment of domestic retail prices may add to the inflation rate in the short run, the RBI believes that this needs to be done as soon as possible. Going forward, high oil and other commodity prices and the impact of the RBI’s anti-inflationary monetary stance will moderate growth. The outlook for crude oil prices in the near future is uncertain given the geopolitical situation in the Middle East and North Africa (MENA). In any case, the likelihood of oil prices moderating significantly is low.
     This means there could be another fuel price hike very soon. Already at the price of Rs. 65/liter of petrol and Rs. 42/liter of diesel, people in the upper middle class are finding hard to run and maintain the cars. Most of the middle class people who are dependent on the two wheelers for their daily community to work place are the most hit. Now thinking of the common man, he has to perish as always. Time to think better and switch on to electric … are you ready?

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