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Q.

Present fuel price rise no doubt will pinch every on and it will cause inflationary pressures. But in the present context it is unavoidable. Your views?

Asked by Good Citizen, 05 Mar '10 11:34 am
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Answers (5)

 
1.

The argument in favor of fuel price rise is to reduce the subsidy burden resulting in huge losses to public sector oil companies. That is understandable. However, price rise is not the only solution here. There are other alternatives to cut the losses. (1) Sometime back, there was a fire at Indian oils oil depot at Jaipur resulting in a huge loss of Rs.500 crores approximately. The entire GOI including the oil ministry simply watched till the fire extinguished itself and no efforts have been made to fight the fire and nobody was held responsible for failing to put in place the right safety standards and structures during emergency events like the above one. Publics and tax payers Rs.500 crores went up in flame. Whose job it is to protect the interest, lives and properties of the public sector enterprises? The same losers are now talking of rising the fuel prices citing the subsidy as an excuse. How justified it is? (2) What about the prevalent oil prices in the international market? It ...more
Answered by Tony Fernandez, 05 Mar '10 12:52 pm

 
  
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2.

International oil prices have reduced so its pointless to increase the price of oil. A slight increase in oil prices fuels inflation and already the poor people are bearing the burnt of inflation so congress government has chosen the wrong time to increase oil prices.
It seems the congress government is mining money from all sectors of the economy.
Answered by manoj thakur, 05 Mar '10 12:01 pm

 
  
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3.

Yes No doubt it is unavoidable bcoz Govt. wants to reduce the subsidy on petro products.
Answered by krishna bhojwani, 05 Mar '10 11:50 am

 
  
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4.

Can not say
it is real hard
Answered by anil garg, 03 Sep '10 09:30 pm

 
  
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5.

Rise in fuel price was unavoidable.but it will add to the pain of common men only .
Common men who are earning even upto four or five lacs per year will face great erosion in their purchasing capacity due to relentless price rise in all commodities and essential services. Current rise in fuel prices will add fuel to fire. If we calculate the cost of all essential goods and services required by a common men family at cost price on 01.01.2009 and compare the same with that of today we will find that there is at least 100 percent rise in living cost of same standard for the same family.

There are some employees who are partly compensated by increase in Dearness allowance by their employer. But most others who are not compensated by increase in DA or increase in salary in private sector are the worst sufferer. Since there is no rise in annual income of most of employees, farmers, labours, daily wage earners (minimum wage not increased), barbers, cobblers, tailors, hawkers, small trad ...more
Answered by Danendra Jain, 07 Mar '10 05:29 am

 
  
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