Oil price hike – A well planned strategy

Recently Government introduced a hike of Rs. 6.28 which after taxes become an increase of Rs. 7.5 per litre. While prices of crude oil are not at its peak in world, but buying power of Indian Rupee has fallen. Even then, we believe it is a well planned strategy.

  • Whenever there is price rise in Oil, there is always a rollback: Considering if there is deficit of Rs. 5/L and they are increasing by Rs. 5/L then it might roll back to Rs.3-4/L. So it’s better be safe than sorry approach, increase by Rs. 7.5/L and on roll back it’ll fall to Rs. 5/L
  • Multifold profit: Even in case of Re. 1 change in oil price, the Oil companies will earn in crores. By the time prices are rolled back, the amount encashed from public will be huge and of course that won’t be refunded.
  • Government subsidy: The prices are subsidised for common public. The Government will have to buy or pay the Oil companies, leading to further stress on Rupee.

Time for blame game to end, but it is to identify the strategy of tackling the problem. But then either we are ignorant or don’t want to take lead.

  • Vehicles which use alternative source like electricity and fuel cell are very costly and are not promoted: Instead of pushing the Oil prices up top, the Government should increase the price of cars – which of course are increasing daily and reducing price of alternate source vehicles.
  • We are power-hungry: Electric car or bike do not have much power but we need more BHP and torque in our chariots.
  • No support from Government for electric cars: The mileage of electric cars may be less but then for city drives it is quite good. In case we run out of power, there are no charging stations on road.
  • Public transport against dignity: Many people prefer own car than using public transport. Of course there is comfort and keep cribbing of pollution and traffic. Where is the effort?
  • Car pooling: Car pooling is an effective option but office timing many a time do not match and sometime dependency on one person. Effective planning can resolve this but how many actually succeed is a debatable topic.
  • Taxis are hooligans and looters: Even on CNG or diesel, the taxiauto-rickshaw charge exorbitant amount and most of the times without meter. There is no control of Government on its Union and pricing. If you take a cab and challenge their pricing, be prepared that nothing will happen. Even Government helpline is of no use as most drivers are without any valid registration.
  • Impatient driving style: We are often irritated by a person who is driving erratic. This is true for others too, but people do not care. At toll both, in lane everywhere wherever we see a vacant place we are ready to shove our car there. This leads to roads blockage, traffic jams. Lane driving is a skill most people lack and road rage is another reason why no one contests and traffic police has been mostly ineffective in spreading lane driving skills. There are other events like talking while driving which causes distraction and wrong decisons. Not turning of engine at red-light comsumes a lot of fuel.

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