Petrol price hike - why so serious?

People fume over petrol price hike

I don't completely get the furore over the petrol price hike. Help me with getting the facts right:

  1. An alternative to petrol price hike is subsidy.
  2. Poor people don't buy petrol. If you use petrol you probably are(or should be) a tax paying citizen.
  3. Who pays subsidy ? - tax payers.
  4. Who pays petrol price hike ? - tax payers and "non-tax payers". Only 3% of Indians pay taxes.
  5. Inflation happens due to both petrol price hike and government deficit from subsidy.

I am all for wider sharing of the burden. :) What is your problem?

 

Filed under  //   price hike  

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