Govt raises LPG cap to 9, deregulates diesel prices
Under the guise of making economy strong, the government today took two major steps. First, subsidised cylinders will now be increased from 6 to 9. Second, by deregularising diesel, the mandate of deciding its price has now been given to the oil companies. As a result, we could see a surge of up to Rs 9 per litre in the prices of diesel.
Government has cited the losses suffered by the oil companies as a reason to have taken this step. If the prices of diesel do rise in future, we may see us-the common people suffer once again. It could be in the form of increased fare of public transport system, rise in prices of essential commodities, which are transported from once place to the other. If the trend continues, inflation may rise like never before.
These are problems that we could face because of certain steps not taken by the government. So what should the government have done to avert this crisis?