The government of India has deregulated the prices of petroleum products. This means the prices of petroleum, diesel, etc., will continue to increase with the increase in the price of crude in the international market. The government has once again increased the prices of petrol, diesel. This time even the kerosene and cooking gas were also not spared. The fresh increase comes close on the heels of tax hike in the Union Budget in February. The deregulation would affect further increase in the prices.
For instance, the Kirit Parikh committee which the government is eager to implement has recommended the increase of Rs. 100 in the price of cooking gas. The all round increase in the prices of petroleum products comes at time when the people are reeling under sky racketing prices of essential commodities. The food inflation has touched historical levels. The petro price hike will have a cascading effect on the prices of almost all commodities as the transport prices shall go up. It is ridiculous that Rangarajan claims that petro price hike would only result in the only one percent rise in inflation. But, the inflation in fact does not have any relationship with the actual prices in the market.
