PM came on air yesterday explaining the reasons and logic behind the most unpopular but inevitable petro price hike. He was virtually begging before the people of the country to cooperate. Its a pathetic sight. The cascading effect of the petro price hike is far dangerous than one envisages. It will fuel inflation and consequent increase in all essential commodities making life difficult for the common man. What else could the Govt do in the circumstances, is the biggest question. Anybody can critisize the Govt, but what is the solution. Its simple. If you take the base price of the petro products, it is 45% only and the rest a consumers pay in taxes. Now what is to be thought of is how to reduce taxes so that the burden of hike is not passed on to the consumers. This should be examined by the Govt. The sales tax imposed by the State govts should also be reduced as was done in West Bengal. No Govt whether it is State or the Centre like to part with the taxes they impose, then how could the prices be reduced? There must be some mechanism by which Govt should declare a tax holiday for sometime to the petro products and after the prices are stabilized, then impose the tax. For the time being the trend is going to be more on the upward side than downward. So more hike would be necessary in the next few months. How the Govt is going to graple with the situation calls for a highest standard of decision to minimise the damage. Its time up for the UPA govt whatever may be reasons.
