Oil price hikes keep common citizen on alert

Petrol and diesel—the primary drivers of our country’s energy and economic mobility—are becoming increasingly expensive. Prices have been hiked four times within just 11 days; while global crude oil prices have dipped below $100 per barrel, the price of petrol in our own country has surged past the Rs 100-per-liter mark. Due to these continuous price hikes, petrol and diesel are fast becoming unaffordable for the common man. The government has repeatedly assured the public that we possess a petroleum reserve sufficient for at least 75 days; however, the only tangible benefit of this reserve appears to be that fuel continues to reach petrol pumps, preventing the formation of long queues. The government contends that while global crude oil prices were on the rise, they kept domestic petrol and diesel prices stable—a decision that resulted in unimaginable losses for our petroleum companies. Consequently, to recoup these losses, the pricing mechanism for petrol and diesel has now been deregulated. Over the last 10 to 11 days, the cumulative increase in petrol prices has amounted to Rs 7.50 per liter. While the price of domestic LPG has remained unchanged, the cost of commercial gas cylinders has soared past the Rs 3,000 mark—a burden that is proving costly for everyone, from hotels and dhabas to street vendors selling food items. As a result, these vendors have hiked the prices of their food platters even more steeply than the actual increase in commercial gas prices. Consequently, a wave of stagnation has begun to sweep through the food markets as well. The issue does not end there; Finance Minister Nirmala Sitharaman has noted that fertilizer prices, too, have reached record-high levels. Therefore, it is imperative to take into account the depreciating value of our currency when purchasing petroleum products and fertilizers. The government has already incurred a revenue loss of Rs 100,000 crore by reducing excise duties on petrol and diesel. While we remain robust and optimistic on the domestic front, the critical challenge lies in how to navigate the current international landscape—specifically, a situation where a primary supply route has been severed for commodities of which India imports a staggering 85 percent. Banks are being urged to develop loan options with repayment schedules tailored to the specific needs and income cycles of businesses. However, this initiative regarding alternative options does not appear to be gaining any traction either. CNG gas was once considered a viable alternative to petrol and diesel; yet, it too is now becoming increasingly expensive, leading to a hike in fares for taxis that run on it. The opposition contends that while the promises were of “good days,” the reality has turned out to be a direct assault on the common man’s pocket. The ruling party, conversely, might argue that this blow has been dealt by geopolitical circumstances beyond their control—specifically, the failure to reopen the Strait of Hormuz, the lack of a resolution between the U.S. and Iran, and Israel’s apparent inclination toward military conflict. In such a scenario, how is one to combat rising inflation? There is but one solution: the nation must become self-reliant. Our country currently projects the image of an import-dependent economy; consequently, amidst this geopolitical turmoil, it is suffering acutely from inflation driven by the high cost of imports. If only—as per official government declarations—this country’s economy had been successfully transformed into an export-oriented one. Alas, we failed to achieve this. We may have chanted slogans of self-reliance, but we ultimately failed to stand on our own feet. We even failed to discover the vast reserves of crude oil believed to exist within our own borders; it is for this reason that we are currently enduring this energy supply crisis, while the relentless rise in market prices leaves the common man gasping for breath.