Saturday, May 14, 2011

The Great Indian Price Hike

Petrol just went up by Rs. 5 today. Apparently it will cost Rs. 67 per litre from midnight! It has now come to a stage when price are really hurting the common man. I remember the shock I got when I heard that a dozen bananas cost Rs. 42. Now with the massive price hike in petrol (apparently another similar price hike is to follow shortly because the petrol companies are still in deficit) and a Rs. 4 per litre hike in diesel prices, the prices of general commodities are sure to rise.

For the Irani cafe goer the indicator is the rate of chai which is Rs. 7 (no the size of the cup remained the same!) and for the one who has not boarded an RTC bus for a while, the minimum price in buses in Hyderabad is Rs. 7 as well. I have no clue how fast incomes are growing. But what certainly is growing is the
amount of money going underground, the black money, the scam money.

This must be a good scenario for politicians. All one has to announce is a free scheme for the poor or basic stuff at highly subsidized prices and the elections are theirs now. People will do anything to get stuff cheap! And the middle class and the salaried class is anyway there to pay the extra taxes so they can be taxed a bit more. But I think somewhere I can see the last straw on the middle class/salaried class camel's back breaking up. It never ceases to amaze me at how the government expects people in this class, whether salaried or in businesses, to remain honest and not be corrupt amidst all this. Once that camel's back breaks there will be no one to carry that load!


Anonymous said...

I wonder if the chai prices are tied to the RTC bus mimimum price. I remember the chai prices were 50paise the RTC minum was also 50paise.

Harimohan said...

Hey Madhav,
Did not strike me but that is weird. I think you have a point there. Wonder who starts it first though.