Political Parties and Petro-price Hike...

There is a certain sense of absurdity in the way political parties behave. But then, that is no excuse or reason to slide into a partyless democracy. The party system is indeed inevitable as long as we decide to remain a Parliamentary Democracy. It is a different matter that we are now witnessing a conscious and even desperate attempt to distort the Parliamentary Democratic system by almost all the parties across the spectrum. And there is no way that such attempts can be frustrated by way of opting for a partyless democracy.

All these came up as I looked into the discourse that is now on in the media involving the political parties and the hike in prices of petroleum products. A cursory look at the statements reveals it all.

The fuel price hike, according to the Finance Minister Pranab Mukherjee will not impact inflation in any big way. Well. One does not know the basis for such optimism. It defies all logic and even common sense. But then, the media reported Mukherjee saying so. It is sad that no one asked Mukherjee to defend his contention. It is as much as saying that even when the ocean caught fire due to an oil slick, a fibre boat can sail through the stretch without catching fire! It cannot happen but when it is said by a powerful person, it should be reported!

The decision is being opposed by the leaders of the DMK and the Trinamool Congress. It is reported that the leaders of these two parties have expressed their resentment against the decision to increase prices of petrol and diesel. Well. They may have. But then, is it not true that these parties are represented in the Union cabinet? It is Mamata Banerjee herself in case of the Trinamool Congress; and such important leaders as M.K.Alagiri and A.Raja in case of the DMK. The point is that they are as much responsible for the fuel price rise as is Pranab Mukherjee. And yet we find their leaders speaking out against the cabinet’s decision!

This is not all. The BJP and the Left parties are protesting against the decision as if it has happened only for the first time. The fact is that all political parties have agreed to move out of the Administered Prices Regime insofar as petroleum products are concerned. In other words, the consensus among parties is to tune the price of petrol, diesel, LPG and other petro-products with the price of crude in the international market rather than forcing the oil companies to break under the weight of selling petrol for a price less than the total cost of crude and refining. All political parties are agreed on this.

Now, there is an argument, advanced by the Left parties, that prices of petrol, diesel and LPG can still be kept lower than it is by way of reduction in excise duty and other such taxes including sales tax. Yes. It is a fact that more than half the money we pay while we fill petrol or diesel goes as taxes. But then, is there a way out of this regime without agreeing to a low tax regime which will also mean less money with the government!
In other words, the governments in the centre as well as in the states will have less money with them; and that could mean less money to be spent on building flyovers, buying the big-fancy-expensive cars for our ministers, judges and others in that category, flying out in style when our big men in government decide to travel within and outside the country and such other things.

It will lead to a shortage of funds when our security forces ask for sophisticated and more expensive guns and other aids to hunt down the Maoists and others who fight against the Government in the various parts of the country. It will also mean that our state governments will be strapped of money when they decide to acquire lands from the farmers by paying market price as compensation and then hand over such lands to industrialists for a song. It will mean less money in the coffers when our ministers decide to construct new buildings from where they can administer the people more effectively. It will be difficult for them to spend money on functions to inaugurate new flyovers and other civil wonders.

In other words, such periodic hikes in fuel prices are indeed avoidable. But then that will require a political will and a commitment to democracy and the welfare of the people; an attribute that is hardly found in the leaders of today. And hence the feeling of frustration and cynicism when one finds the manner in which the fuel price rise is reported and debated in the media.