May 23, 2012
Breaking news of the day – the petrol price are
“atrociously” hiked by more than 11% - to Rs 75.70 per liter. For most people,
this is quite steep. Today, this is the most talked about news – all people,
social media, news channels – all communication channels are talking about it.
Petrol pump ( gas station) owners are seeking protection, because they are
fearing protests/mutiny. Opposition is riding high. This is another down ward spiral for
Congress; another upward for inflation – where is the world headed? Where is
India headed?
After cribbing and sharing practically non-existent
political opinion, I started driving back from work. Suddenly, as I approached
the petrol pump, I see an extremely long, long queue of cars at the petrol
pump. Since the price hike is effective midnight, all the commuters were trying
to take advantage of every last drop that they can buy at the lower price. This
is a standard phenomenon you notice whenever there is price hike for petrol.
The amount that they are able to save is meager – in the larger scheme of things.
And the stress that they get in exchange– long queue at the end of long work
day – is probably not worth it. But, that’s my opinion. I don’t know what their
situation is, and every penny counts. This will always be a mystery for me. But
what I definitely know is:
- - For today, the petrol pump owners will make excessive money
- - There will be additional stress for all the people who are in the queues.
- - The traffic will be at peak till midnight
- - People will get their tanks full – rather than a regular Rs 1000 full
- - There will be no reduction in petrol consumption. If at all, baseline of consumption is going to increase
- - People are going to buy pricey cars with reduced mileage
- - And most important, half of every liter will be still wasted in crazy traffic jams
Why does a price hike means a panic hike? Why does it mean
that we add one more stress to complicate our life, rather than simplify it? In
this era, petrol is basic necessity – in the same league as Air, Water, Food
and Clothes. Then, why panic? Why not think of alternative solution – to commute,
and to manage budget??
I agree with you that there is no need to have a short term panic attack - but in the larger scheme of things, this will contribute to an ATTACK in the long run with affordability becoming difficult for the large masses contributing to already atrocious crime levels ( usually fuel price hike is accompanied by hikes in all possible items of general consumption)!.
ReplyDeleteYes my dearest economist - i totally agree :)
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