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COMMUTERS ARE SWEATING AND IT IS NOT SUMMER – PETROL PRICES MAY RISE HIGH

Petrol-1Well if you think that the lasts week’s inflation number 7.33% is a shocker then you are mistaken. Because the number is actually the suppressed rate of inflation, as the government and oil companies have absorbed most of the shock in oil prices. Last week’s number of inflation – 7.33% is a shocker to the people and this is not even the true numbers as the government and oil companies have absorbed most of the shock in oil prices. Without that, inflation could have been in double-digits. While the price of gas cylinder is still at Rs 300 here, the world prices warrant a price of Rs 620. The same applies to petrol and diesel, whose prices were hiked marginally not so long ago. The subsidies for both fuels are much higher at nearly Rs 12 and Rs 17 per litre respectively. And kerosene, which is available at Rs9 per litre today, is actually closer to Rs 30. The inflation however suppressed has hit the common man hard. While the consumer has been insulated from this price shocker, it is the Petroleum companies that are facing the brunt of it. In the process, they could end up posting huge net losses for the first quarter of this fiscal. However, no government, however benevolent, can absorb that kind of losses year after year or expect its oil companies to do the same. Hence, industry experts predict that there would soon be a rise in commodity prices once again with inflation hitting the roof. While the question of these companies to hike its price is a wait and watch, one should not count on petrol prices staying where they are forever. With cameraperson Rajendra Prasad, Ajaz Khan for NMTV News.

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