Inflation will hit the ceiling and oil companies will gain some quick bucks following the move.IndianOil (IOC), Hindustan Petroleum and Bharat Petroleum are the major players in the market and were allowed to fix petrol rates on their own that has increased by four times since June 2010.
The move could make a big difference to the common man. “The government is quick in responding to demands of the market but when it comes to the common man, it takes its own time in coming out with concrete measures to bring down food inflation," said BJP spokesperson Nirmala Sitharaman. “It clearly shows the government"s attitude."
Inflation stands at 8.5 percent and an unexpected hike in fuel prices would mean a drastic increase in inflation levels. Any increase in fuel prices would step-up inflation leading to goods and other household items getting costly, since two-thirds of goods in India is transported by diesel powered trucks.