Are you scary of recent increase of petrol price and inflation ? Well .... if yes then be prepared , its just a start. Here is some analysis -
January 2002, the price of crude was averaging less than $19.50, now it is about $132 a increase of about six time. But what about petrol price in India ? In 2002 it was about Rs 30 and now it is about Rs 55 a increase of about two times.
International price are increasing fast and now Goldman Sachs estimated it to touch about $200 . The short-sighted UPA government did not see it. They neither did proper measures to reduce countries oil dependency nor increased oil price because of fear of loosing vote bank.
Fig: Widening gap between domestic & international oil prices (Source: Business World)But if the domestic price is not increasing as fast as international, where is the losses are going?
The PSUs IOC, BPCL etc. are the real looser in this game they are going into big losses . But how long they can sustain these losses ? May be till next general elections :P ... but today or tomorrow the oil price has to be increase and thus inflation .....
