Why Petrol is so costly?


Why Petrol is so costly?
KARTIKEYA SEMWAL
DEHRADUN, MAY 26, 2012:
Petrol is such an important article of human use, that without it life could come to a standstill. Industries could cease to exist and economies could collapse. Prices of petrol are affordable for public in other countries but in India, it’s a completely different story. Poor people can’t even think of using it. And now with prices touching Rs.74/litre, even the middle class wouldn’t be able to afford it for long. Yet MPs and MLAs and politicians of ruling party at the centre government have the facility of using as much petrol as possible for free. Infact they get a petrol allowance for it. The question is, why should only general public bear the brunt of petrol price hike? Why not the MPs and MLAs be made to pay the price of petrol that they and their families use for free? Why are they given petrol allowance when they are paid monthly wages of lakhs?
 With increase of Rs.20 in the last 3 years, Congress led UPA-2 has been really pinching the common man hard. The Indian population of about 1.5 billion should for once question the centre government, why are they in power if they can’t control inflation and petrol prices. Everyone has been talking about rise in petrol prices but no one has given it a thought as to why such a sudden price rise? There are multiple reasons and we are going to discuss some of them here.
The first reason is reduction in import of oil from Iran by India. We all know US has been trying to isolate and Iran over its Uranium enrichment programme for which it has asked countries all over the world to reduce their oil import dependency on Iran. India is one of those affected countries. India did reduce its oil import from Iran by up to 22%. But US hasn’t provided India with an option to replace Iran with some other country for cheap oil import.
The second reason is increasing number of two wheelers and four wheelers on roads due to boom in the automobile industry. More cars and bikes means more and faster use of petrol. This has resulted in more demand and less supply.  
The third reason is inflation which is rising with every passing day. Due to this, everything is getting costly and since petrol is the basic requirement, its prices have increased the most and the fastest.
The fourth reason is weakening Rupee against the dollar. The last time rupee fell against the dollar was in 2008 when Rupee traded at 53/dollar. And everyone knows that India does most of its business tradings in dollars. Infact many countries do that as dollar is considered as an international trade currency. And as we know, India does its oil imports in dollars and so its obvious that if rupee falls, the oil would cost more.
Now what needs to be done is addressing all these four issues jointly. India should either ask the US to provide it with cheap oil imports itself or search in African and Latin America countries with some allies to replace Iran as oil exporting country. Dominican Republic, Cuba, Puerto Rico and Venezuela are a few Latin American countries from whom India could import oil.
The next reason is making cars and bikes costlier and putting a cap on companies to limit their car and bike sale in the Indian market. If the supply is limited, the demand for oil would come down itself. Then there is inflation, which can be controlled only if industrial output is increased and importance is laid on boosting the agricultural sector. Providing better pay for raw materials and limiting the price of finished products.
The last thing to dos is strengthening the rupee by improving its status against the dollar. If these four measures are taken simultaneously, it would surely bring down inflation as well as hike in petrol prices. These steps would also help the country’s economy to rebound and start making progress at around 10-12% every year.    

Comments

Post a Comment

Popular posts from this blog

Indian Navy needs a variety & quantity upgrade in submarines

Image
By: Kartikeya Semwal Conventional submarine  Indian Navy is the world’s 7 th largest navy in the world with 294 warships. While our biggest enemy China is ranked 2 nd largest with 730 warships of different types. This is a cause of concern as we aren’t even half of our enemy. In the last 1 decade, under Prime Minister Shri Narendra Modi ji & Raksha mantri Shri Rajnath Singh ji, our navy has added many warships to its fleet, yet a lot more needs to be done. China has a large number of different types of submarines ranging from conventional to nuclear. The advantage that they have is that they are building their own submarines & that too, at a fast pace. Contrast to that India doesn’t makes its own conventional submarines. And there is a huge gap in this category. China has 48 conventional submarines which means that it can deploy as many of them to watch or surround Indian Ocean region (IOR) while India has only 16 conventional submarines. Those too are the old Russian Kil...
Read more

Indian Army gearing for major Artillery Upgrade

Image
Indian Army gearing for major Artillery Upgrade By- Kartikeya Semwal Indian Army has been a recognized force across the world. With changing scenarios across the borders and keeping its eastern neighbour in mind, Indian Army is gearing up for a major upgrade of its artillery units. Recently it had brought 100 K9-Vajra self-propelled artillery guns that are of 155*52 calibre. It is going to repeat this order & buy another batch of 100 similar guns with modifications for cold weather & low temperature during winters. K-9 Vajra  Indian Army is also modifying its 21 regiments of 135*45 mm Sharang guns to 155*45 mm. 6 regiments have already been modified while the remaining 15 will be modified in the next 5 years. Besides, Indian Army is also buying indigenous Dhanush towed artillery guns that are of 155*45 mm calibre and can fire APFSD shells to destroy armoured tanks and bunkers of enemies.  Sharang As if this was not enough, Indian Army is also gearing up to buy atleast ...
Read more

Rebuilding IAF for future wars: More Rafels, Tejas Mk-2, AMCA needed

Image
  Indian Airforce has played an important role in guarding India for decades. From time to time, it has showcased its importance ranging from Indo-Pak wars to Bangladesh’s independence war to Kargil war. A few years back, IAF’s prowess could also be seen through Balakot Surgical Strike that was done in POK to destroy terrorist training camps. But with passage of time, IAF’s fighter squadrons have gone down. Against the required 42 squads, IAF has only 32 squads which is a cause of concern keeping our two unfriendly neighbours China & Pakistan in mind. IAF was supposed to acquire over 100 new fighter jets over a decade ago but lack of signing of deal & the long new fighter jet assessment process resulted in not acquiring any new jets in large numbers. Rafale  The present Modi govt. did buy 36 new Rafale jets from France but that is not enough. The MRFA tender hasn’t been signed yet, under which 114 new fighter jets are going to be acquired. Once this is done, it will ...
Read more