The Government of India’s Friday move to deregulate petrol and petroleum products grants total freedom to petroleum companies. It means writing an obituary of the country’s poor by facilitating rudderless inflation. The GoI did not pass on the benefits of substantial decrease in fuel prices in the international market to the consumers when there was a glut in the petroleum market. Another thing that is intriguing is that the deregulation and increase in fuel prices as been effected at a time when the country has already signed a civilian nuclear deal with US that entitles it to import of nuclear material from Nuclear Supplier Group of countries to meet its energy needs.  Signed in 2008 with much fanfare the benefits of the civilian nuclear deal are yet to accrue to the masses. Whatever the compulsions it had, the UPA Government ought to have taken the entire opposition as also all the state governments in to confidence before embarking on the issue. The hike has already invited flak and protests by ruling alliance partners and opposition parties are a testimony to the fact that there has been no consensus over it.  The largest opposition party BJP has already threatened to launch a nation-wide agitation against it. Trinamul Congress and Left parties have voiced their opposition to the deregulation and consequent hike in fuel prices. Yes it must have consultations with a few leaders from the opposition but it seems the voices of dissent have fallen on deaf ears and the GoI has pressed ahead ostensibly to offset the losses suffered by state owned petroleum company. The increase of Rs 3/liter of petrol; Rs 2/ liter of Diesel; Rs 3/liter of Kerosene and Rs 35/ cylinder of LPG is going to make the life hellish for the teeming millions of the country’s poor. For making their two ends meet the poor will have to struggle more and their woes are going to be manifold with the rise in inflation. As if the spiraling prices of the food items were not enough to crumble the fragile economy of the poor, the UPA government has now sown seeds for more suicides by the poor. The reaction in the Himalayan state to the union government’s decision to increase fuel prices is on expected lines as the deleterious impact of the increase in fuel prices and deregulation of petrol and petroleum products is going to be more pronounced in this hill state than in the plains as almost entire merchandise is transported from place to place through the road transport. In absence of a petroleum or gas pipeline to this northern most state, the fuel prices are going to be higher than elsewhere, so the consumers here are going to pay through nose. In fact the increase in fuel prices has wider ramifications for the hill state than it has for other states. The costlier fuel means more cutting of trees in the already ecologically vandalized state. Unfortunately the state’s economy has remained in a limbo for more than two decades owing to the turmoil and even as it was struggling to come to grips with the situation, the Union Government has pushed it in to an abyss. As the regulation of now deregulated fuel prices is a central subject, obviously the state government has no role to play. Yet it can seek some relief from the union government in the form of some subsidy on essential commodities to offset the impact of the increase in the prices as a sequel to the deregulation and increase in the fuel prices. Further the state government could demand laying of petroleum and gas pipelines from the nearest gas/petroleum depot or rail-head to the valley to minimize the impact of increase in fuel prices. This would have long term impact on environment also. Further the state could increase the rate of royalty on the electrical energy generated from the NHPC’s hydro-power plants in J&K and pass on the benefits to the state’s poor. 

Lastupdate on : Sun, 27 Jun 2010 21:30:00 Mecca time
Lastupdate on : Sun, 27 Jun 2010 18:30:00 GMT
Lastupdate on : Mon, 28 Jun 2010 00:00:00 IST