Amidst depreciating value of rupee, the hike in petrol prices is a testimony to the fact that the government has failed to tackle deteriorating economic condition. The continuous depreciation of rupee against dollar is mysterious and a matter of grave concern. Firstly, it is hard to understand that why is Indian rupee deprecating more as compared to other Asian countries and secondly why isn’t the government taking any concrete step to put an end to the crisis? There are conflicting views on whether the Reserve Bank of India (RBI) is doing anything in this regard or not. It is high time the RBI wakes up and shows some keenness in solving the crisis. Has the RBI too become a victim of policy based indecisiveness? Whatever the reason, the government has done little to stop the decline of rupee. Pinning blame on global circumstances will not help. Certainly the European crisis has hit India hard but that cannot be the sole reason for the steep fall in rupee.

Hadn’t the rupee depreciated so much the price of petrol wouldn’t have been hiked. It is not only about petrol prices but a weak rupee in many ways puts burden on various other things. Aviation industry and oil companies are not the only ones to face the brunt of a weak rupee but trade will also get affected and prices of imported items will shoot up drastically. Another thing to be noted is that export has been decreasing as compared to imports. The government may claim that there is an increase in foreign investments in India but the truth is completely different. The manner in which petrol prices have been hiked goes on to show that the government is only trying to be opportunistic by burdening the urban population. Though the general election is far away it seems that the government has begun its preparations leaving the economy in the lurch.