Inflation Calls For more Price Cuts

Inflation Calls For more Price Cuts

The need to control inflation is undeniable and the government must undertake a strategic initiative to quell inflation.

FPJ EditorialUpdated: Friday, September 01, 2023, 12:03 AM IST
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FPJ Editorial: Inflation Calls For more Price Cuts | Representational Image

The reduction of ₹200 per cylinder in the price of Liquid Petroleum Gas (LPG) may have generated some applause, but its impact on the prevailing runaway inflation remains disappointingly symbolic. As the dust settles, it becomes evident that such moves are political manoeuvres. With elections looming in five states, including Madhya Pradesh and Rajasthan, the timing of this reduction raises eyebrows, suggesting a calculated attempt to sway the voters. While any relief for consumers is welcome, it's crucial to recognise that this isolated LPG price cut is akin to applying a band-aid to a gaping wound. A meaningful effort to curb inflation necessitates comprehensive action, including equitable reductions in the prices of various petroleum products, particularly diesel, widely used for goods transportation.

The need to control inflation is undeniable. The surging prices of essentials, particularly vegetables and pulses, have made survival increasingly difficult for the common man. To alleviate this burden, it's imperative that the government undertakes a strategic initiative to quell inflation. A mere token reduction in LPG prices, divorced from broader reforms, falls short of the remedy that the people desperately require. At the heart of this situation lies the perplexing contradiction between crude oil prices and the price consumers pay at the pump. The plummeting cost of crude oil, coupled with India's sourcing from Russia at nearly half the OPEC price of $86 per barrel, demands a significant rethink in pricing strategy. The government's claim that domestic prices mirror global crude oil trends must be held accountable in light of these factors. The argument for uniformity in pricing policy is compelling. Reducing petroleum prices across the board is not merely a suggestion; it's an imperative.

This approach aligns with the principles of fairness and economic prudence. A consistent policy would allow the common man to experience real, tangible relief instead of temporary gestures that merely scratch the surface of the problem. The current atmosphere provides an opportunity for the government to establish a precedent for sensible pricing policy. By lowering oil prices commensurate with the advantageous position India finds itself in, the government can demonstrate its commitment to the welfare of its citizens. Such a move would alleviate inflation, reinvigorate consumer confidence, and bolster the economy. A holistic approach, involving proportional reduction in the prices of other petroleum products, is the need of the hour. The government must heed the call for consistent, equitable pricing policies that offer meaningful relief to the common man.

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