The proposed increase in petrol prices by Rs 1 and diesel by Rs 2.28 at retail outlets, which was necessitated due to the firming up of global oil prices, has been put off by state-owned oil companies Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.
The planned price hike, in keeping with the existing price pattern followed by the oil companies, was based on international oil prices and foreign exchange rates. But the National Democratic Alliance government at the Centre feared that a price hike could have an adverse effect on its prospects in the coming Bihar Assembly elections and chose to look the other way, thus providing temporary relief to consumers, according to its convenience.
Why has the government allowed its economic policies to become subservient to its political ambitions in Bihar? This appears to be an example of what 'sensible economics proposes, dirty politics disposes'. One wishes the government had the courage to continue with its usual economic stance by timely revising retail auto fuel prices, according to norms. But of course the priorities of our political masters lie elsewhere. However, this is simply a case of postponement. We only have to wait till the Bihar Assembly elections are over to get real.
S Kumar New Delhi
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