The proposed gas price hike may not
be convincing from a rationale angle when election is round the corner. Such a major policy decision having implications on the entire
economy and its people could have been postponed by having an interim
relief sort of arrangement as rightly brought out by the author. The
force behind such a drastic step seems to please some of the Corporate
giants under a quid pro quo which is intelligible to all in the helm of
affairs but not to the ordinary masses who will bear the brunt when the
pass through effect a comparatively new concept to pass on the cost to
consumers is given.By doing this, the Government can pass through its
present difficult situation and pass on the benefit to Corporates and
perhaps see through the election with enough of monetary support.The
intentions of the Government are clear and very many. Economists and
professionals cannot have a correct perception of the policy
perspectives.This announcement has pleased the market players as the
Sensex rose sharply by 519 points in a very short time.This economy is
run by a few industrialists,a handful of politicians,some market players
for whom the theories of economics and nuances of Corporate Governance
do not matter much, is known to a vast majority of the educated class.
The justification for such a policy comes from the self interest as is
the case in respect of all major policies.
( This comment is in response to an article Gas price Increase is not Convincing that appeared in ET dated 28th June 2013.)
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