THE time of reckoning has come for India to deal squarely with the oil and gas and fuel prices. The Government has taken the step to introduce steep hike in the prices of commercial LPG cylinders along with a similar hike in the prices of 5-kg cylinders. And to make matters clearer, the Government has indicated a possible hike in fuel -- petrol and diesel -- prices in the next some days. Some day, the Government was sure to take the major steps of allowing a reasonable hike in the prices of these. This was inevitable, thanks to the war in the Middle East. Yet, the Government made a political decision to wait for the legislative elections in five States to be over -- before it made a decision about the LPG and oil and gas prices. Now that the elections are over, the Government has hinted that a price hike in fuels may not be ruled out. For the common Indian people, this hike would come as a bane -- no matter how inevitable the price hike may have become. From now on, the average Indian family would be troubled with the steep rise in the prices of all sorts of fuels. Their family budgets would get distorted beyond recognition. There also will be a likely reduction in social activities because of the price-hikes in fuels.

 

Until now, as the war raged in Middle East, the Government in India somehow managed to hold the price line. Supplies had been hit to some extent. Yet, thanks to the far-sightedness of the Indian leadership, India never ran into shortages of all types of fuels. India also used its diplomatic apparatus to impress upon Iranian leadership that it was in everybody’s interest that Iran released ships carrying all types of fuels to India. Even that reduced supply of all fuels kept the domestic requirement of India well serviced. This achievement by India was seen by the world as remarkable since most countries allowed fuel prices to shoot as per demand-and-supply mode. That situation did give to common Indians a sense of romance that India was unaffected by the supply-crisis despite the raging Middle East war. Now that the constraint of elections is gone, India now needs to reconsider its fuels prices -- which the Government has already initiated. This situation may not last for long -- for there are possibilities that the war may end or some understanding about the passage of ships through the Strait of Hormuz so that many countries of the world start getting their supplies of not just the fuels but also of other merchandises so essential to world trade.

 

The situation may remain tense in Strait of Hormuz. For, both the sides need to remove blockade of the critical sea route. Yet, both the parties will surely keep pointing finger at the other. A lot of time may have to be spent before the crisis is finally over and the sea route is clear for open usage. Until that happens, India will have to endure steep hikes on fuels prices -- and the people also would have to keep patience until the issue is finally sorted out. With the fuels prices high up in the sky, the country may have to face an equally steep hike in prices of almost everything. The common consumer may get loaded down with such a steep hike in entire range of utilities. Yet, there would not be any escape from that eventuality. It must be admitted that India has to face such a situation that is not of its own making -- no matter then what the political Opposition might have to say.