The oil prices have been skyrocketing in India since last few days. They
have crossed the never seen before level of more than Rupees 100 per litre in
several cities and towns across the country. The rise in the prices of both
patrol and diesel is already having its impact on several other essential
commodities whose rates have also gone up considerably. Common people,
particularly those belonging to the poor and middle classes have been hit very
hard by these developments.
The hike in the oil prices has also given an excellent opportunity to
anti-BJP opposition parties like the Congress to take on and criticise the
Narendra Modi led National Democratic Alliance(NDA) government in New Delhi on
the issue. Apart from threatening to launch a nationwide agitation if the
Centre failed to control the rise in the oil prices as well as prices of other
essential commodities, the opposition parties have also demanded that the Modi
administration should immediately reduce the central taxes on oil products.
This would provide the common citizens some relief from the pain.
The union government has so far refused to concede to that demand.
Instead, it has advised the state governments to reduce their own taxes which
they have imposed on oil products to increase their income. But majority of the
state governments have not yet heed to this advice. So the common people
continue to suffer. And according to some experts they will suffer more in the
coming days.
Now the question is why neither the Central nor the governments in the
states are keen to reduce the taxes on oil products? The answer is very simple.
They need a lot of money. The fact of the matter is the political class in
India have turned the country into a nation of freeloaders. Here everything is
free. Rice free, pulses free, edible oil free, hospitals free, treatment free,
medicines free, birth free, death free even vaccines are also free. Where the
money will come from to continue with this “everything free for vote” exercise?
In this context one remembers the reported remark made by former prime
minister Manmohan Singh while interacting with a group of Members of
Parliament(MPs) belonging to Biju Janata Dal(BJD), the ruling regional outfit from
Odisha, when the Congress led United Progressive Alliance(UPA) was in power in
New Delhi. “Money does not grow on trees”, Singh reportedly told the law makers
from the eastern India state.
The former PM was right.
Money does not grow on anybody’s backyard. Unfortunately many in this country
including leaders of different political parties, particularly those belonging
to Singh’s own party the Congress, do not understand this.
Prime minister Modi while announcing free ration for the poor till the
next Diwali, the festival of lights, in view of the Covid situation had said
that the scheme would benefit about 80 crore Indians. That means in a nation of
130 crore people, as many as 80 crore are freeloaders. Apart from this
programme of the PM, there are a hell lot of “free” schemes for the poor being
run by different state governments – outcome of competition by political
parties to garner votes.
Both the central and the state
governments know a hike in the oil prices is the best and the easiest way to
generate substantial revenue for official activities including rolling out
populist and vote catching measures such as all kinds of freebies. Because,
come what may all will be forced to buy fuel to carry on with their day to day
life. Hence just go on imposing different kinds of cess and taxes on oil
products.
When Congress led UPA was in power, the country had seen upward journey
of the oil prices on several occasions. That time BJP led NDA, then in the
opposition, had hit the streets protesting the UPA government’s decision. Now
the table has turned. The UPA has threatened to do what the NDA was doing when
the former was running the country. Observers firmly believe that if tomorrow a
third front would capture power in New Delhi they would also go for fuel price
hike. And both the Congress led UPA and BJP led NDA will be on the streets protesting
the decision.
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