 |
|
The recent increase in petrol, diesel, and LPG cylinder prices by the central government has triggered a fierce backlash from the Congress party, who are branding Prime Minister Narendra Modi as the 'inflation man'. The opposition party is particularly critical of the timing of the price hike, which coincides with significant losses in the stock market due to global economic uncertainties stemming from trade tariffs, notably those involving Donald Trump. The Congress argues that this move further burdens citizens already grappling with economic anxieties. Mallikarjun Kharge, a prominent leader of the opposition in Rajya Sabha, expressed his discontent through a post on X, highlighting the disparity between current crude oil prices and the increased excise duties on fuel. He questioned the government's insensitivity to the financial struggles of investors who have suffered substantial losses in the stock market and accused the government of adding 'salt to the wound' by raising fuel prices. The party also attacked the increase in LPG cylinder prices which directly impacted the poor families that are the beneficiaries of the Ujjwala scheme, arguing that those families savings were being looted by the government.
The Congress party has amplified its criticism by circulating an old video of Prime Minister Modi opposing a similar price hike during the UPA regime. This tactic aims to expose perceived hypocrisy and inconsistency in Modi's stance on fuel price increases. The party claims that Modi had previously condemned the government for 'snatching away gas cylinders from the people' when prices were raised by a smaller amount. By juxtaposing Modi's past statements with the current price hike, the Congress seeks to undermine his credibility and portray him as insensitive to the economic hardships faced by ordinary citizens. The move to share the video on social media is a strategic effort to mobilize public opinion against the government's decision and garner support for the opposition party. The constant comparison of the Modi government to one looting the people highlights the level of antagonism between the two parties and highlights the negative consequences of the price increase to the average citizen. The use of words like looting, extortion, and fraud is a clear attempt by the Congress party to paint the Modi government in a highly unfavorable light and to mobilize public opinion against the economic policies of the administration.
Union Minister Hardeep Puri announced the increase in LPG cylinder prices, explaining that the price per cylinder for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) would increase from Rs 500 to Rs 550, while for others, it would increase from Rs 803 to Rs 853. In addition to the LPG cylinder price hike, the government also increased excise duties on petrol and diesel by Rs 2 per liter, effective from the following day. These measures have sparked widespread concern and criticism, with many questioning the government's rationale for increasing the burden on consumers during a period of economic uncertainty. The Congress party's reaction reflects a broader discontent among opposition parties and segments of the public who believe that the government's economic policies are exacerbating existing inequalities and undermining the financial well-being of ordinary citizens. The price increase announcement, especially regarding the cylinders for Ujjwala scheme beneficiaries, has also been highlighted as a breach of trust towards the weaker sections of the society. The increase of excise duties on petrol and diesel is seen as a further blow to the public, increasing the price of transportation and thereby increasing the cost of other essentials.
The increase in fuel prices and LPG cylinder prices is a politically sensitive issue in India, where a significant portion of the population lives in poverty or near-poverty and is highly vulnerable to price fluctuations. Fuel and LPG are essential commodities, and any increase in their prices can have a cascading effect on the cost of other goods and services, leading to inflationary pressures and increased economic hardship for ordinary citizens. The Congress party's attack on the Modi government over this issue reflects a broader political strategy of highlighting the government's perceived failures in managing the economy and addressing the concerns of the poor and marginalized. The opposition party is seeking to capitalize on public discontent over rising prices to gain political advantage in upcoming elections. This particular political struggle showcases a long running debate in India between government subsidies and the free market. The use of subsidies is often used to give relief to vulnerable members of the public, but critics of subsidies argue that it creates inefficiency. On the other hand, supporters of a free market will often push for an end to government subsidies and intervention, allowing market forces to dictate pricing. Supporters of subsidies claim that they play a vital role in protecting the poor and vulnerable and that some government intervention is needed to create fairness.
Beyond the immediate political repercussions, the debate over fuel prices and LPG subsidies raises fundamental questions about the role of the government in regulating the economy and ensuring social welfare. The government's decision to increase excise duties on fuel and LPG prices may be driven by fiscal considerations, such as the need to raise revenue to fund government programs or reduce the budget deficit. However, such measures can have unintended consequences, such as increased inflation, reduced consumer spending, and social unrest. The Congress party's critique also reflects broader concerns about the government's overall economic strategy, which has been characterized by a focus on supply-side reforms, privatization, and deregulation. Critics argue that these policies have disproportionately benefited large corporations and wealthy individuals while neglecting the needs of the poor and marginalized. The decision of the Modi government to increase the price of LPG cylinders and fuel is an indication of the challenges and trade-offs involved in balancing economic growth with social welfare. It also serves as a reminder of the political importance of these issues and the need for governments to be sensitive to the concerns of ordinary citizens when making economic decisions. The political ramifications for the price increase may be that the public chooses another political party in the next election, especially those who depend on the price of fuel to survive.
The broader economic context further complicates the issue. Global crude oil prices, while lower than in the past, remain subject to fluctuations due to geopolitical factors, supply disruptions, and shifts in demand. India, as a major importer of crude oil, is particularly vulnerable to these fluctuations. The government's ability to control domestic fuel prices is therefore limited by external factors. Additionally, the government may face pressure from international institutions and creditors to reduce subsidies and increase revenue collection. These pressures can constrain the government's ability to provide relief to consumers during periods of rising prices. The government defends its actions by arguing that it is necessary to maintain fiscal discipline and invest in infrastructure and development programs that will benefit the country in the long run. They may also argue that subsidies create distortions in the market and discourage efficient resource allocation. Therefore, the public has difficulty understanding the rationale behind the prices increase if they are told that their government is working to improve their lot, especially when so many people are experiencing a loss of funds in the stock market, even though those two things are often not related. The constant conflict between economic growth and the welfare of the people continues to cause problems to the relationship between the public and their government.