Hey I broadly do agree with you that this debate on the price increase is futile and that at the end of the day the consumer cannot be completely insulated from it. The trigger here being this ongoing global debate on fuel price rise (over $ 130 now) and its impact on the Indian economy. After having held it back for so long the Indian government has finally raised the prices marginally (10%) bringing about some relief to the oil companies, much to the charging of the Left who are just looking for a credible excuse to exit the UPA and cut their so called losses. One thing is sure this price rise is definitely going to increase commodity and all other prices across board. Don't ask me what this will do the inflation which is already over 8.2 per cent, what with a hardening of interest rates just around the corner.
My point being that economists have been drawing up all different scenario's based on which side of the fence they lie left, right or centre. To me the solution is not very complex. The bane of the entire issue is crippling fuel prices which has already started even adversely effecting other sectors and spoiling the wonderful growth story we have been enjoying thus far. Why not just minimize or try and completely eliminate this source from the picture. All that needs to be done is that
Step I Oil companies need to immediately switch to LPG/CNG as a source for auto and other fuel. This can easily be done as there are huge reserves of gas that can be commerciall
