Here is an important reason that you start educating yourself about the election schedule in Uttar Pradesh- the government will increase the petrol prices by Rs 3 a litre after the crucial elections are concluded. The inflation, government had controlled with much difficulty would soar due to increase in commuting costs.
VERY SOON people would rue as to why Uttar Pradesh elections finished well in time – as it is believed that petrol prices would increase by Rs 3 per litre early next month, soon after the decisive assembly elections finish in Mayawati-ruled state.
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According to The Times of India, executives of oil corporations have been told in an informal directive by the government to hold the price till elections despite high international prices. One can understand that government would like to remain in good books with the electorate before they poll the ballots and once they have done that, they shall face the fire of the increased prices.
As the commuting costs go up, it will increase the inflation, which government had managed to control with great difficulty. But they (government) seem to have decided to loosen the grip as oil companies will seek compensation while they fear massive losses. Indian oil Corporation Chairman, R S Butola told the paper that the company can’t sustain for long and they will be forced to raise petrol prices if international prices prevailed at this level.
The move is more likely to force people towards ‘dieselisation’ as diesel prices seem to be under government control, possibly because they are important to them politically – you should know that diesel is widely used in farmlands and public transport.
International petrol prices on one hand and the conflict surrounding the oil-imports from Iran due to its stand-off with the US and Israel on the other hand could bring renewed worries to India. As Iran threatened to close Strait of Homuz route, oil vessels would take longer time to reach India, which would obviously increase their costs.
The coming months, it seems could hit the commuters and people here very hard as inflation would increase due to soaring fuel prices and depreciating rupee value. In this case, people would only pray that elections are held in more politically important states so that government starts to think of alternate ways to control the fuel price and the inflation.
