Surging fuel prices

It is rather unusual to see the Government calmly watching the growing misery of the common man under the pressure of rising inflation, fuelled by increasing oil and gas prices, and shrinking jobs and income. It would be fundamentally wrong if the government continues to allow prices of petrol, diesel and gas for industrial and domestic use to go up to inflate its tax income just to cover part of its growing fiscal deficit.
The rising expenditure on the Covid-19 management across the country coupled with an extremely slow economic growth has put a heavy pressure on the government chest. The government is using increasing tax collection from rising oil and gas prices to cover its growing fiscal deficit. The retail fuel and gas prices – industrial and domestic – are going through the roof. The movement of materials and men has become extremely expensive. If the situation continues, the economy in its current fragile state of growth is bound to collapse. It may lead to widespread social unrest and even destabilise the government.
Nantoo Banerjee