Re: Fuel prices increase 16 days in a row. What the hell is happening? So glad to see a balanced debate using facts and figures. Head says fuel hike is necessary - we are paying the price for governmental incompetence and unaccountability. Heart asks why we must suffer continuously for someone else's sins.
My Rs 1.5-
Why this hike is necessary
- Yes, the government has run out of money, and needs to squeeze everyone for fuel tax. This is starkly clear.
- The writing has been on the wall for a while now. Covid has exacerbated the situation by decreasing industrial output and collection of GST and other levies, but we were headed for disaster. A lot of this is mismanagement, but still, we need to survive.
- Most people on this forum own one or multiple vehicles. Even with high mileage usage, you are unlikely to see a drastic difference to overall spending. Anyone privileged, not just on this forum or in India, takes taxation as a personal affront (I do). Most are happy to spend 250 bucks on a cup of coffee while cribbing about a 10 rupee price increase in fuel. Buy one pizza less, maybe?
Why this hike is usurious
- This government was voted in on the promise of development for everyone. It came with huge tailwinds - historically low oil prices and an absolute majority in Parliament, enabling passing of any legislation. It wasted both of them. If done properly, we would have seen 8%+ growth (old figures, not new jugaad) consistently for 5 years, which would have negated this entire debate.
- We have not had any significant improvement in business environment. Don't talk about skyscraper city (not being personal), ask business people who employ and generate revenue. Our finance minister does not seem to know what to do, and the current dispensation seems allergic to professional advice, relying instead on grandiose statements and optics.
- Any talk of using this money for Covid or ventilators is eyewash, IMHO. Major cities are still out of beds and medical facilities. GoI's own admissions are that a very small fraction of the total promised ventilators have been delivered in 4 months.
- Please remember that the biggest consumer of diesel is the Indian armed forces. You are essentially hobbling their budget by increasing prices.
What pisses people off:
- VJM spent a few millions (~15 cr) on a birthday party, when he owed 9000 cr. This turned the national mood against him. Sitting RBI gov Rajan also called him out in the press. Now if you spend thousands of crores on statues and random new buildings, and tax the hell out of everyone for it, is it not the same? Yes the percentage may be small, but optics matter. This dispensation has mastered optics except in this case.
- We have an extremely corrupt bureaucracy and political class, that swallow hundreds of billions every year. If our government was serious, they would crack down on that and use that money for good. 15 lakhs for every Indian, maybe. Instead, the silent and small middle class get squeezed every year. And they're the ones on this forum.
- A 10% hike in fuel prices may be very good for the nation, and bearable for us, but ask Swiggy riders what they think. You're essentially taking that STRAIGHT out of their net income. And before you think they're a minority, Swiggy is (pre-Covid) projected to be the second largest employer in India, after the Railways.
- Don't even get me started on that new govt fund being floated that has a couple of billion dollars in it that will remain unaccounted. |