The panel of ministers for fuels is likely to carry out an in-depth discussion regarding the unbidden trends that are cropping up due the further fall of rupee against the dollar, and recent happenings in the international oil market. However, it seems that the government would not bring the startling issue that is a sudden hike in motor or kitchen fuel prices under its purview.
Oil Minister S. Jaipal Reddy on Wednesday met Finance Minister Pranab Mukherjee, who heads the panel, to fix a meeting of the committee, in order to make a demand for an increase in retail prices of both motor and kitchen fuels.
On Tuesday, Hindustan Petroleum Director, Finance, B. Mukherjee cleared the air, hurting public sentiments, by informing reporters in New Delhi that the companies were strongly mulling upon raising the petrol price. He further indicated that the hike could be witnessed with effect from this week.
The government said that the companies are free to bring about a change in the rates of petrol but only after an informal green signal from the oil ministry, as it has the maximum stake. Although, of late, the government has opposed the trend of increasing prices foreseeing the outburst by consumers that are already struggling with high inflation and costlier loan instalments.
Moreover, Parliament's Winter Session, which commenced from 2nd November, would probably give the opposition a chance to pressurise the government, in case the prices of fuels ascend. Also, such an anti-public move could offer more relevance to BJP leader L. K Advani's nationwide rath yatra that has been highlighting the issues of corruption and price rise.
Therefore, the government would probably ask the companies to adopt the wait and watch strategy, in order to study the patterns emerging from Eurozone and oil demand. It is important to note that both the aspects have a strong impact on the currency exchange rates and crude prices. As a matter of fact, the rupee has provided signs of recuperating and mix of oil that India buys has lowered to $105/barrel from $108/barrel over the last week.
The untoward situations haunting the country every now and then is the result of government's own policies, wherein it does not compensate for losses on petrol.
Thus, going by the current news, the common man would be bearing the brunt yet again, while the political system would get another topic to play the blame game.
