We all know that at this point, prices of fuel are soaring high and citizens are worried about their mounting expenses, while the Central government is standing by the astronomical fuel rates. We are fretting over fuel costs, as this has largely gave harsh outcomes on the salaries!
Since May 4 this year, fuel prices have been raised at least 23 times. In some states petrol and diesel now cost over Rs.100 per litre. Critics of the Modi government, such as Rahul Gandhi, have been hammering on that the Centre is making citizens suffer. Although the centre has acknowledged that the prices are inconvenient, it maintains it is doing good with the revenue.
Union Minister for Petroleum and Natural Gas Dharmendra Pradhan has said that the income from fuel is helping the Centre to pay for numerous welfare schemes. These include distributing food grain to low income groups and giving farmers higher Minimum Support Prices for last year’s crop.
Rising fuel prices are indicative of overall inflation in the economy. This means that prices of things we buy every day are going up and will keep going up. Although inflation to a measured degree is a normal and necessary part of economic growth, some economists say that inflation at this time spells danger for Indians.
The economy is heading towards “stagflation.” That’s when economic growth dwindles while inflation disproportionately shoots up. With unemployment rising, stagflation could potentially push more and more Indians into poverty.
Instead of penalising the government, they say India’s economy is already on a slow path to recovery. Economist Surjit Bhalla told India Today that 2020 was a global emergency and the Indian government cannot be blamed for a flagging economic growth rate at a time when the world has been turned upside-down. He said that by the end of the year, inflation will be back under control, so there’s no need to go up in arms just yet.
So we can now only see what the future holds and how drastic it could be.