A current debate is going on regarding deregulation of the prices of petrol, diesel and other fuels. Our petroleum minister argues that this deregulation is best suited or the economy, our prime minister remarks that this policy is in the best interests of the people our country but is it only I or even you are alien to the benefits that our politicians claim to shower on us.What exactly is deregulation? Deregulation is the euphemism for “I don’t give a shit to what happens to the economic situation of the common man”. It simply takes off subsidies from the spectrum of fuels. Many experts argue that deregulation is a strong statement towards building of a stronger economy and setting fuel prices free, that is they should depend openly on the crude oil price in the world.
Do you think this policy would ever work for us? The petroleum prices in India are heavily subsidized. The money spent by the government to control the prices is huge and without that support the entire working class would suffer like hell. The prices would rise exponentially and the automobile industry would spiral down as the petrol would become dearer. And in times when we are not even sure whether the recession has receded and we are out making policies that are trying to curb public spending. Are we ready to risk market destabilization at the cost of a better tomorrow when the tomorrow is still too bleak to appear?
I ask how the government dare even think to deregulate the petrol prices when it cannot assure stability and provide the people what seems to be their due. Every day our politician promise and proclaim that the food inflation would cool off soon, but could anybody explain me the mathematics which could justify these blatant lies. If you increase the price of petrol you directly increase the transportation cost, and when transportation costs increases the food prices go up as transportation is the only means to provide food to the consumer.
I think that now even a simple calculation could show that in the near future food inflation has a good possibility to go further up rather than going down. You see how all policies and benefits are entwined to make the system complex and people dependent on the government and then leaving them starving for more when they most require help. Policies help people but they should be controlled and withdrawn at time when the situation is ripe and not when the public is itself crying on the roadside for support.
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