Editorial
Fuel prices
An uphill battle
The continual increase in the price of fuel seems to be an un-ending spiral which is affecting common people. The price hike is the second one since May of this year. Occurring in a matter of months, the public tend to think what compelled the government to go for another raise.
In fact, it gives rise to a whole host of questions. From the point of view of the government, it is an inevitable, necessary step, so much so that this time around, it bypassed the standard procedure of public hearing and discussion with stakeholders. It did so through an executive order in order to shorten the delays.
If, in effect, this is a decision to cut subsidies to reduce bank borrowing by the government one wonders whether there were no alternatives to resort to.
The oil price hike leads to increases in production and transport costs, thereby raising the general cost of living. The ultimate victim of such sharp rises in inflation is the common man. Unfortunately, salaries do not increase at the same rate as inflation (which has risen from 10.96% to 11.29% in August). The essential question is; how does the government envisage the people will survive in such situations unless their purchasing increases? Does it propose any solutions or will prices rise to a point which creates even more poverty and need?
We endorse the suggestion of an economist that the government should take a more proactive role in the food market to ease the pressure of prices. They need to go for more of open market operations, and boost TCB's functioning as procurer and distributor. Above all, they should rev up VGD, VGF and Food for Works (FW) programmes. These measures should be prioritised to cushion the low-income groups against inflationary pressures.
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