Fluctuating oil prices and its effect on nation's economy

With the continuous falling of crude oil prices, conditions have become favourable for the government to deregulate the prices of petrol and diesel completely. But still LPG prices are yet to be deregulated.

Government is giving a subsidy of around Rs 300 per cylinder, totaling to around Rs 3,600 per connection in a year, considering maximum 12 subsidised cylinders per year. This is certainly a huge burden to the national exchequer.

In an appreciable drive by government owned oil marketing companies, provision has been made for consumers to voluntarily opt out of subsidy programme. It is expected that the consumers who can afford to buy the LPG cylinders at the market rate may take a decision to opt out of the subsidy programme in the national interest. Finance minister and some of his ministerial colleagues have taken the initiatives in this regard and have set a good example for others. The drive has got a wonderful response from general public as well and many have voluntarily opted out of the subsidy programme.

That is certainly a welcome step and commendable effort by government as well as public to contribute towards nation building exercise.