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Essay On Price Rise Of Petrol In India

RISING PRICES

OR

PRICE HIKE

 

  Prices are ever on the increase.  A rise in prices, economists say, is a sing of development and prosperity.  But during the last two decades, prices of almost all the essential commodities have been increasing at an alarming rate.  These soaring prices have caused great unrest and frustration among the people.  The people belonging to the middle class and the salaried people are hit hard.  All the more, the soaring prices have become a big threat and an open challenge to the government.  It has shaken the faith of the people in the government.  There is no let-up in the situation.  Life has become very hard.

                Not to speak of rising prices, things of daily use are sometimes not available in the market.  Big businessmen hoard things and sell these in black.  Adulteration of eatables is a big health hazard.  Sometimes, there is no sugar, no kerosene oil, no cooking gas, nothing.  The prices of petrol, cooking gas, kerosene oil and several other items of daily use are increasing every year.  Not only that, the railway fares, air fares and bus and taxi charges are also increasing regularly.  The rich make a display of their wealth while the poor find it difficult to make both their ends meet.  Life has lost its charm for the average bread-winner.  The indiscriminate rise in prices of essential commodities has left many a people tense and helpless.  No one can foresee what is in store for the common people.

                There are many causes of the unprecedented rise in prices.  Inflation, black marketing, hoaring, faulty credit system, over population and improper system of distribution are some of the major causes of hike in prices.   The standard of living of the people has improved.  People need more things than they needed earlier.  The increasing demand leads to hike in prices.  Sometimes, natural factors like flood and drought also contribute to rise in prices.  Much food is being wasted in the parties and marriages.  Production of food is not in proportion with the increase in population.  Social evils also tax the common people badly.  With the breaking of joint-family system, the cost of living has gone up.  The purchasing power of the rupee is continuously falling.

 

                It is now being increasingly felt that large scale corruption by some political leaders in power and some senior officers in the government  is also the cause of constant rise in prices.  In the recent past, several scams have come to light that involve big amount said to have ben pocketed by the big-wigs of the country without any shame or remorse.  Several cases are pending in the courts.  It is, however, feared that influential and moneyed people have the power to so circumvent the legal process in their favour that they go scot free.  These huge amounts of black money produce a very bad effect on the economy of the country and lead to a rise in prices.

                It is  the duty of the government to bring down the prices of the essential commodities at least.  Price line is the life line of a nation.  Blackmarketeers, hoarders and profiteers must be brought to book.  Family Planning programmes should be stepped up to check over-population. More fair-price shop should be opened in different localities.  There should be an equitable distribution through the fair price shops. Shopkeepers should be directed to display the stock of essential commodities along with their prices.  Those people who buy things in the black market should be punished.  Production of food should be increased.  Sincere efforts should be made to stabilize prices of essential commodities. Evils of corruption, bribery, smuggling and illegal gratification deep-rooted in the society must be rooted out.

                Let us hope that the government will be able to bring down the soaring prices.  What is needed is the right intention and the force of will.  The government has, in recent  past, taken some steps to control the prices and revamp the economy of the country.  The government efforts have met a partial success and inflation has been controlled to some extent.

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July 24, 2015evirtualguru_ajaygour10th Class, 9th Class, Class 12, English (Sr. Secondary), English 12, Languages9 CommentsEnglish 10, English 12, English Essay Class 10 & 12, English Essay Graduation

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Oil marketing companies are planning to put in place a mechanism under which fuel prices (petrol and diesel) will be aligned to international crude oil prices on a daily basis.

The effect: You will have to check petrol and diesel prices daily before refuelling your vehicle.

In fact, according to a Reuters report, state-owned fuel retailers plan to implement daily revision of fuel price in five cities from May 1 ahead of a nationwide rollout of the scheme, industry sources said.

To begin with, daily revision of fuel prices will be implemented in Puducherry and Vizag, Udaipur, Jamshedpur and Chandigarh, they said.
Currently, oil marketing companies decide on change in fuel prices on a fortnightly basis.

Let's examine the impact of the proposed change in fuel prices on a daily basis.

ALSO READ: Why petrol, diesel prices may change everyday

Political interference
 

The government deregulated petrol price in 2010 and diesel price in 2014. It, henceforth, allowed oil marketing companies to decide on the prices of fuel, considering the change in international oil prices and currency exchange rate.

Since oil marketing firms Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp are state owned, they are often not allowed to raise prices in the election season since it would prove detrimental to the prospects. To compensate oil companies for that, the government allows them to charge higher prices even when international oil rates have fallen.
Assembly elections in five states-Uttar Pradesh, Punjab, Goa, Manipur and Uttarakhand- were held  during January to March 2017.

Oil marketing firms raised petrol and diesel prices by Rs 1.29 per litre and 97 paise on January 2, 2017. They cut price of petrol by Rs 3.77 per litre and that of diesel by Rs 2.91 a litre on April 1, 2017, the first change in rates in two-and-a-half months even though currency exchange rates and international crude oil prices fluctuated by wide margins during the period.

But the decision to change fuel prices everyday will less likely invite interference from political parties to address their interests. Even if they would interfere with the price change, they will not be able to defer the decision for long due to the urgency to revise prices daily.

No shock to customers

The revision in oil prices will not affect consumers much as international oil prices do not fluctuate widely on a daily basis. So, change in prices of petrol and diesel will not badly affect the commuters in the long run.  They may be in for a surprise if some major international event affects the price of crude oil and its effects are felt on diesel and petrol prices in India.

Effect on inflation

The new practice will add one more factor to the change in price of essential commodities such as food items, cereals, fruits and vegetables. The prices of essentials may fluctuate on a daily basis, if the mechanism of daily change in fuel prices comes into effect.

Books of accounts

The price movement will immediately reflect on the book of accounts of oil marketing firms, allowing them to reduce or make provision for losses or profit arising out of sale and purchase of fuel on daily basis. Maintaining sales and cash receipts journals will become a lengthier process after due to daily change in prices of fuels.