Thank IMF, Not Modi for fuel price cut.

 Oh! Indian Media , for heavens sake, Follow International News.

On 18th May, IMF chief Kristalina Ivanova Georgieva-Kinova announced major policy decision calling all member states to provide subsidy in "Food, Energy and Fertiliser" (See https://www.imf.org/en/News/Articles/2022/05/17/pr22158-statement-md-on-joint-plan-to-address-food-insecurity )

 She also went on BBC and various other notable networks saying that Government must cut tax and provide subsidy, if needed with fresh IMF loans. And I quote her directly, 

Russia’s invasion of Ukraine has precipitated serious economic and social consequences around the globe. Among them, many countries are now facing dangerous food shortages and sharply higher prices for food, energy, and fertilizers. These pressures occur at a time when countries’ public finances are already stretched from the pandemic and public debt burdens are high. With inflation reaching the highest levels seen in decades, vulnerable households in low- and middle-income countries are most at risk of acute food insecurity. And history has shown that hunger often triggers social unrest and violence.

“If we have learned one lesson from the 2007-08 food crisis, it is that the international community needs to take fast and well-coordinated actions to effectively tackle a food crisis, by maintaining open trade, supporting vulnerable households, ensuring sufficient agricultural supply, and addressing financing pressures. I am honored to have been able to work together with the heads of other International Financial Institutions to propose concrete actions. Coordination between us will be critical for the plan to have maximum impact in quickly alleviating food insecurity, especially for the most vulnerable households in the most vulnerable countries.

 

So it was International Monetary Fund that allowed Indian Government to cut excise duty on Petrol and Diesel and also provide Rs. 200 subsidy on Ujjawala LPG. 

Another Piece Of News , Godi Media won't tell.

This very week, Oil Marketing Companies (OMCs) told central minister that If Taxes and duties are not reduced, they can't bear the under recoveries. They also pointed out that these excise tax hikes started under Low Crude Price in Modi-Jaitley regime. 

Some Godi Media are too cute.

They are running the news in conjunction with RBI's payment to Government as if that pays for Fuel Price Cut. No darlings, RBI has been coughing up dough every year this time, ever since this RBI Governor took charge. 

So Pressure on Government worked, but for how long ?

 The pressure on Government has worked, Pressure from Common Man, Pressure from Opposition Parties,  Pressure from OMCs and finally from "Masters of the Universe", IMF. And Today's Election loss of Modi's dear friend, Scott Morrison in Australia has put the some chill down Adani and Modi's spine.

But Modi has only completed one out of 3 price cuts, Just Petrol and Diesel (Interesting how greenish CNG has been left out) and LPG subsidy is not for all, only poor families will get that.

 Now that Food prices are contaminated with high transportation cost, remember even after excise duty cut they hover at Rs. 100 per litre mark. This is not low price by any stretch of Imagination . 

 Modi must provide ,  Food & Fertiliser subsidy. But will he? As for Petrol, Diesel price cut, OMCs will resume 80 paisa price hike per day very soon. And in 10-12 days, prices will jump back again. That's their plan, I fear.