With crude oil touching $ 103, amidst fears of instability in the Region due to the uprising in Egypt, Indians should brace themselves for another round of petroleum product price rise. The oil companies will cry hoarse about under recovery and then rise the prices by Rs 3-4. The impact on prices will be scary.
More than 50% of the Petrol retail prices comprises of taxes. The government can hold the prices at the retail level but at the same time give a higher recovery to the oil companies by reducing the excise duty. But the Government finances are in such a mess that they would rather welcome the bonanza in increased tax revenue that comes with a petrol price hike, than easing the misery of the common man.
This government has become lame duck and there is no hope of salvation in the near future.
