Crude is still on the upward journey. Though the Uncle Sam is said to be slowing down ahead of expectation, the cooling off is for oil is yet far from visible. The crude has comfortably walked passed the $135 mark and is expected to kiss the $150 mark by end of this month. If this happens then there will be little options where the Indians can run for shelter. The recent hike in the petroleum products is already opposed by not only the opposition but also the participants such as Communists as the inflationary pressures arising out of it.

As we near the parliamentary elections there is little left for Manmohan government when it comes to saving the face. If the prices move southwards post elections the parties coming to power then will surely get the credit of controlling inflation, if at all that happens. As the global inflationary pressures mount the domestic petro products marketeers are also expected to approach the government for re-negotiations. One must admit that the recent hike along with the package on offer is no way going to save the oil marketing companies. The possibility of a travel from red to blue has again turned glim.

At a moment of time, the true payer of the prices are the segments of the society where the income is fixed. The low income group and the pensioners are the worst hit. As the prices spiral these groups become more and more vulnerable. There is a need to protect these groups especially when there is a want of social security system in the country.  The government cannot reign in the inflation in the immediate short term and hence there is a clear need to focus on the qualitative factors so as to kill the malpractices involved. Hoarding and black-marketing incidences are to be identified and the culprits must be thrown behind the bars. There is a need to repeal some of the provisions of the statutes that deal with these offenses.

At a time when the short term measures to please people are becoming priority over the long term strategies, it seems that there is less to be expected on this front. However if the government in the center does not act, there is a higher possibility that the people will in the next elections.