The Hindu Business Line : Oil prices

The article “Fuel price hike: Don’t blame the UPA government” (Business Line, June 10) has rightly defended the UPA government’s move to raise fuel prices, and one can sympathise with the Prime Minister, who was faced with this dilemma.

It is really sad that politicians in the Opposition, and even in the ruling coalition, fail to apply reasonable common sense in reacting to such price hikes. They do not miss out on any opportunity to put the blame for rising inflation and spiking oil prices on the government.

Many of them obviously have no idea how prices are determined in the market, which is demand and supply driven.

They don’t understand that by subsidising fuel prices we are ultimately subsidising consumption for the rich, who consume a major chunk of the oil, and not the middle-classes or poorer sections.

Although the Rs 50 hike in the price of a gas cylinder has hurt the middle-class, it is more environmentally correct to find ways to reduce our consumption or seek alternatives.

I think, instead of opposing such moves and calling bandhs, which are an utter waste of time and energy, efforts should be to reduce oil consumption.

Most politicians, who themselves have three or four cars, should reduce their consumption even more, as most of it is financed by the state. It is time for Indians to be practical and accept the reality!

Dipesh A. Mehta e-mail

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