Gas prices have been close to and above the $3.00 mark since March, and I haven't found a credible reason for it yet. Of course, there seems to be a supply shortage, but why? The Government of India raised Petrol and Diesel prices in June, and Veeresh Malik seems to be confused about who to blame for the rising oil prices. He states that Indian Oil did not respond to enquiries about prices, and that is somehow linked to private oil companies' greed. Indian Oil is a state owned company. Even the example of Indian Railways he uses is that of state inefficiency. Gas prices in India are controlled by the state, and private oil companies can only use the prices that are set by the government. Mr.Malik seems to be talking about price gouging even without having his facts about the case in order. He even states that the amount of money spent on taxing oil at different levels would be sufficient to sustain a few states.
If the oil companies collect tolls for building highways, why should they give the money to the government? I like the conclusion that the petroleum ministry is also the answer to this. But are they listening?
Read his article here.