Petrol Prices: A Great Industrial Game

Posted on July 27, 2012 in Politics, Society

By Udit Garg:

For many years, cost of fuel prices has become an ultimate source of pain for Indian “common” man. It is the biggest democratic “ants” (common people) that are always burdened by the many policies of Indian “Democratic” Government. Privatization of fuel was one of those policies that changed the scenario of ants. In today’s life, no matter where one lives, one at least has a car as a mode of transport. But now people are crying because they don’t have something to run that car i.e. Fuel!

If we look at recent statistics, in 2012 alone, the cost of petrol has increased by 10% while in last decade it grew up by 180%. Ever thought of the reason behind it? Commercialization! Government granted licenses to various private companies like ONGC (Oil and Gas Corporation), BPCL (Bharat Petroleum Corporation Limited), Reliance Industries, HPCL (Hindistan Petroleum Corporation Limited). And as we know pretty well, as soon as such thing happens, they add a fixed profit margin of private company apart from the cost it need to commercialize its product like advertisements, banners, development in looks of petrol pumps etc.

There is a big reason behind privatizing fuel, because now Government is not held responsible of inflation of petrol prices. The reason behind that is the license order given to companies which says that petrol is sole property of the proprietor and as per the agreement companies’ just need to pay a fixed amount of petrol they sell to the government for providing them with the licenses.

Just for the record, there is a huge difference is petrol prices of India and Pakistan. Against Pakistan, India has a better extraction and processing technology but still this scenario is sustaining. It is a reality that a can of beer and a liter of petrol sell at nearly the same price. But, still why does such inflation exist?
Just think, 3 Petrol Pumps in front of each other, all of different companies. I believe “common people” must have understood what I want to say but for those who did not, the increase in competition is the reason! Everyone want to sell their products at a cost most profitable to them while selling to most people, and no one likes loss against the competitors so these prices go on increasing till companies are forced by Government to reduce the cost..

It is a common trend by Government and the companies: increase the cost by Rs.3, let people make chaos and then reduce Rs.1 to calm them down saying, “Look, we achieved the un-achievable! We reduced the cost of petrol.” And what an ant can do except accepting the fact that he can save another rupee per liter. Phew! What a relief isn’t it? But, today I’ll like to bring out  the truth of ants too! Let’s take an example! We cannot drive another 10 meters ahead to take a U-turn and are ready to take the wrong-way but we can always go to Cannaught Place, just to eat a ‘Pan’ of Rs.100. There are many more classic examples with me but it’ll just show the stupidity of ants.

I believe, it is time to not just stop at Rs.1 reduction. We are not entitled to pay an ever increasing profit margin of the private companies and should revolt against them! A revolt with non-violence and subtlety.