Politics of fuel hikes: Sonia knows best

"Govt may hike petrol prices this week, duty cut unlikely "- ZEENEWS

Government may raise petrol price by Rs 2 a litre and diesel by Re one a litre this week, but a duty rejig to minimise impact of high international crude oil prices looks unlikely.

What a fuss over such a small fuel hike! OK one understand hike in diesel prices will fan inflation; but why this hesitation over petrol?

The decision on the quantum of increase will be taken by the Cabinet headed by Prime Minister Manmohan Singh, possibly later this week.
"Earlier, we were given an indication of a Cabinet meeting this (February 4) afternoon, but it is not happening today... Hope the meeting takes place soon," he said.

The delays are because Madam is against the hike. Elections are coming up in states. Moreover with things hotting up over the Nuclear Deal, even a general election is imminent. Hiking prices now would be stupid fot the Congress Party. Listen to Sonia,guys!

The official said state-run Indian Oil, Bharat Petroleum and Hindustan Petroleum are together projected to lose over Rs 71,000 crore on sale of petrol, diesel, domestic LPG and PDS kerosene this fiscal as the government has capped retail prices.

Who cares? No one is going to shed tears for the oil companies.

Last week, a Group of Ministers headed by External Affairs Minister Pranab Mukherjee had left a decision on fuel prices to the Cabinet after the panel was split right in the middle on the issue. Petroleum Minister Murli Deora insisted on a duty cut rather than price hike, while Finance Minister P Chidambaram was of the opinion that it cannot be just one way street.

Chidambaram is a economist first, politician later. Murli Deora is only a politician.

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