A demon in the name of Fuel

Every friday, i anxiously wait to see what the inflation figure is! For the last 2-3 months, it is breaking the record for the highest inflation rate in the last few years. Why inflation is raising and how can it be controlled? Why our economic expert not able to find the solution? Is it coz, of raise in inflation globally...

Lets see where it all started - Crude Oil prize is close to $135 a barrel and expected to touch $150 barrel in a month.

(Note : 1 barrel = 158.98 liters: source http://www.metric-conversions.org/)

So, taking $ value as INR 43 - A litre of crude oil should cost us around Rs. 36 plus refining charges are around INR: 1.70. So, the cost price of Petrol should be around Rs. 37.50.

Whereas in Mumbai, they sell the petrol for 55.50. Close to 40% premium to their cost price.

Still, the petrol companies are losing close 450 crores per day. The main reason is excise duty, sales tax impounded by the respective state government. Apart from impounding taxes, the government decides the prices and they say indian fuel are the most subsidized rates in the world. Cut the taxes to the maximum. Transform the remaining taxes into the selling and manufacturing companies of Cigarattes & Liquor. Increase ten folds the cost of cigarattes and liquor, by doing this atleast you will save few peoples life who can't afford to buy these at premium rates and at the same time you increase the revenue for the government coffins.

By increasing the crude prices, you increase the transportation prices which invariably affects the day to day commodity prices of a common man. Try to encourage the manufacturing of hybrid vehicles and use of natural gas instead of usual LPG. India has got tremendous natural resource to compliment the development of eco friendly fuels.

I'm not saying people sitting in the corridor of power are not thinking, but they are bound with certain political compulsion and certain people use the power for their personal interest. Dear Babus don't put your personal interest in front of billions of citizens. Then, don't come to ask our vote during the next elections shamelessly.

By writing this note, i'm hoping the inflation doesn't cross 10%, what a common man do with such a high inflation rate, whereas we get interest at max of 9.75% in FD, a deficit of .25%

Just praying that crude prices should fall and inflation rate should be around 6.75% - 7%.

Am i Dreaming? Hope the dream be real.