Gas in Can only

Diving rupee and shooting crude prices - A double whammy for Indian Oil PSUs. Left with no way out, BPCL in a Persian act has rationed supplies at domestic gas stations. The move would lead to black marketing of the products.

In wake of the coming elections, Indian Government has been turning a blind eye to the rising crude oil prices and lending a deaf ear to the Oil PSU's SOS calls to raise gas prices, for quite some time now. Government already wary of ever rising inflation (7.83%), has been avoiding the inevitable since stepping on gas at this moment would mean accelerating inflation into double digits and facing the music at ballot boxes.

The government, under pressure has lowered import duties on a series of items, and curbed some exports to keep domestic prices down by ensuring supplies adequate. Both actions are leading to fall in rupee value, which in turn is adding to the inflationary pressure. Yet Montek Singh of planning commission, feels that inflation would fall within a few months.

In 'wake up now or never' situation, the government is meeting tomorrow to discuss the hike in gas prices. 'Lekin Aam ke mausam mein khaas baat shayad hi ho'. 'Long live THE common man' will be the agenda for now.