Your petrol prices are high because UPA left 2 lakh crore of oil debt to be paid by Modi sarkar

Fuel prices are hurting. Petrol prices have broken Rs 85/ liter in several cities. Is this supposed to be Achche Din?

Of course not.

Well, how could it be? We all like to splurge and then we hate it when the bill comes due. Except in this case, it is not us who splurged, it was our overlords in the UPA government who did and left us stuck with the bill.

Well, why won’t the government just cut the fuel prices? If you are asking this, you probably do not know the kind of deep well that UPA dug for us before they left office.

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When global oil prices rose in 2012, 2013 and 2014, the UPA’s reputation, along with India’s economy, was already collapsing. If public anger had been stoked any further by surging oil prices, the Congress might have been reduced to single digits in 2014. The ruling dispensation had already scammed pretty much everything available on land, air, sea and even in space. There was only one thing left to do. They could scam us out of our future earnings.

So how did the UPA lower oil prices. Instead of paying Oil Manufacturing Companies (OMCs) in cash, the government started “paying” them in ‘oil bonds’. An “oil bond” is not money, it’s just a promise that the government will pay them in the future, preferably under a different ruling party that will be left to bear the brunt.

Think of it as the UPA paying for oil with a post dated check. Only worse, because when you issue a bond, you also have to pay interest on it. So it is more like a credit card.

By the time Modi sarkar came to power, the UPA had already swiped its credit card to borrow a whopping Rs 1.3 lakh crore worth of oil. In the last four years, the Modi government has had to pay back UPA’s debt in full along with Rs 70,000 crore in interest.

While Modi has been paying UPA’s credit card bill, the Congress Party has been on the streets asking: why won’t PM Modi cut oil prices? Is this Achche Din?

Think of it as a father who mortgages the ancestral home to pay for his gambling habit and then runs away one day, leaving his sons and daughters to pay back the loan.

Only worse, because once those sons and daughters have worked hard and repaid the loan, the father comes back and asserts his right to ownership of that ancestral home.

Strip the orchard bare and run away. Let someone else tend to the garden. Come back when the fruit is ripe for picking.

This is what Congress has always been : always there for the taking and never there for the making.

 

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15 thoughts on “Your petrol prices are high because UPA left 2 lakh crore of oil debt to be paid by Modi sarkar

  1. We understand this when we read these explanations.
    The only issue is that this government is not making these statements public and going out to explain the mess UPA left us with in 2014.
    More and more people are asking “what has this government done for me?”. That the government is working to make systems ready for our growth, that we have build huge forex reserves, etc are very difficult for common man to understand.
    This has to be explained with a lot of advertisement by BJP.

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    1. Sure, this was out on the street for some months, now. And I am wholly convinced that Cong in its entire pathetic existence was never up to any good. Heck, I still believe in Providence that we have managed to remain a sovereign State, in spite of all their effort.

      What gets my goat is also that the government I believed and voted for has played it soft with them and kept me in the dark for a good part of 4 years! Its as though you’ve been had by your own family!!! 🤕

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      1. *Good thread. Pls read!*

        This was the strategy of the Congress for a long time:-

        1) Moghuls became Indians and Indians became Kafirs.
        2) Nehru-Khan-Maino became Gandhi and Indians became fools.
        3)Muslims became Kashmiris and Kashmiri Pandits became refugees.
        4) Bangladeshis became #Bengalis and Bengalis can’t celebrate #DurgaPuja in soon to be #WestBangladesh
        5) Those who are intolerant of #Hindus became #Secular and the real seculars became #Sanghi terrorists.
        6) #Maoists and #Urban Naxals have become Intellectuals and Intellectuals have become #Bakhts
        7) Terrorists became ‘poor-sons-of-headmasters’ who killed/beheaded army men and the army became human rights violators who used pellet guns on these peaceful terrorists.

        8) The #TukdeTukdeGang became patriots while the patriots were condescendingly and derogatorily branded as #Ultra Nationalists and RW
        9) Wood used for #Asthi became an environmental concern while the land used for burials became secular birth rights.
        10) The wool used in #Rakhi during #Raksha-bandan hurt the sheep but thousands of #bakris slaughtered in the most cruel manner during #Bakri Eid is religious freedom
        11) #Appeasement has become secular while #Equality has become #Communal.
        12) @RSSorg are terrorists but #Osamaji #HafizSaheb and #Hurriyat are personification of nationalism and peace
        13) Those doing dalali (the sold out agents living in #Lutyens and their partners) are #Journalists while those who speak the truth are dalals.
        14) Saying #Bharat Mata Ki Jai is communal while #BharatTereTukdeHonge is #Freedom Of Expression
        15) #DivideAndRule is inclusive and #Sabka Saath Sabka Vikas is divisive
        16) #Reservations, #TripleTalaq, #NikahHalala are empowering whereas empowerment schemes like #MudraLoan are communally biased
        17) When unemployment creates terrorism, terrorist attacks are reciprocal and the when the army retaliates it is branded inhuman.

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  2. Dear Sujoy,

    Several of my economist friends (real ones, not the Amartya Sen kind) were saying in May 2014 that NaMo should at once bring out white papers highlighting the mess which the UPA-II left for him to tackle. By 2013, the UPA-II realised that they did not have a snowball’s chance in hell of coming back to power, so they followed a “scorched earth” policy for the next government. At the time I felt that these people were right, and that NaMo erred in not airing such details. In retrospect I believe that NaMo did the right thing. In May 2014 the press was not totally discredited as it is now, and any negative news would have caused FDI to dry up, Rupee to plunge, etc. NOW is the right time to bring out all of these details.

    Having said that, I am deeply disappointed that even staunch right-wingers like you (and Abhijit Majumder) are buying into the “Oh my God, petrol prices are at an all-time high! The sky is falling!” narrative. And in some cases (though not with you but with Manjunath above) “What has the government done for me?” and perhaps even “I am going to vote NOTA!”

    To repeat a comment I made on an earlier post of yours, do you know what else is at an all-time high? My bank balance! Yes, THAT is what Modi Sarkar has done for me. Last year even the ultra-conservative SBI mutual fund index has gone up by 12%, and more speculative investments have gone up by 30% to 50% — all this while inflation is at 4%. Does anyone really want a return to the 11% inflation (and 50% inflation in food items) of the UPA-II era?

    And what exactly is the fuss about petrol prices rising by 8% to 10% over four years, an average rate of 2% to 2.5% per year. Hasn’t your salary gone up by more than that?

    I have a request to make. PLEASE STOP TALKING ABOUT PETROL PRICES, or if you must talk about them, talk in the dismissive tone above. Definitely DON’T say “Yes, petrol prices are high and it is hurting the common man BUT it’s not Modi’s fault.” Only losers talk like that, making excuses. Winners would tell whiners to grow up.

    Apologies for the strong language.

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    1. Just to clarify my comment above, I am NOT questioning your erudite explanation of why petrol prices are so high. Rather, I am questioning the over-reaction to the supposedly high petrol prices, from some supposedly pro-BJP people.

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  3. “Strip the orchard bare and run away. Let someone else tend to the garden. Come back when the fruit is ripe for picking.”

    Yes, this is the one thing we BJP supporters should not allow Cong to come back & enjoy the fruits as they did in 2004.

    But apart from the voters, the party leadership/PM too has a responsibility to ensure that 2004 does not repeat. For that BJP should reduce VAT on petrol substantially in all states ruled by them. They could increase it after LS2019 elections if they want. Play politics so that you can continue to win in politics.

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  4. Psychologically speaking, all this “contest” with respect to rising prices and increasing petrol prices is a notional thing in the thought process of people.

    The government can tackle this in one stroke and do two things to win over both the poor and the middle class: declare a monthly income of Rs.10,000 per family for those in the Jan Dan Yojana group and a nice tax break for the middle class (say, 10% marginal tax above Rs.10 lakh and no tax below that) ahead of the general elections. They will reward in huge numbers – a bird in hand etc etc.

    Yes, the fisc is in jeopardy thanks to the UPA and there is a huge NPA crisis, again all thanks to the UPA. But if the barbarians have to be stopped at the gate, now’s the time and the next five years could be spent reforming the whole process.

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  5. This is pretty common occurrence world wide from one government to the next. UPA One got benefits from the Vajpayee government. Sometimes the reverse is the case. When Obama took over, US economy was in pretty bad shape. GM was on the verge of bankruptcy and the wisdom of the phrase, as the GM goes, so goes America was apparent. Obama had to bail out GM. Two years later GM was going great.

    As far as our petrol prices goes, Modi government did good. About four years ago, the petrol price in the world market went down from more than 100 dollars per barrel to forty six, forty eight dollars per barrel. Our petrol price did not go down by fifty percent. This allowed Modi government to take care of the Petrol oil bonds. On this, I would say, Modi Sarkar lucked out.

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  6. The petrol price by itself is not a big deal because it is in the ballpark of the numbers people are used to. If the price went to Rs 1000, then it is different. But a few rupees above or below the figure people are used to wont register. Both the central and state governments have the flexibility of reducing the taxes levied on petrol. But the moment you adopt socialism, you have to play all these tax games to transfer money from one pocket to another. These are mostly zero sum games in that someone will get affected by these kind of taxes and wont be happy.

    CW’s “taking versus making” comparison is good. BJP has been a party that has brought order and fiscal control in otherwise chaotic misrule that India has otherwise been subjected to. The growth rate in BJP tenure averages about 7.5 % whereas in non-BJP tenure it probably averages 2 %. This in spite of the fact that BJP in both tenures took over an economy that had been shot to holes by the previous government and was attempting growth from a higher overall base. If BJP had ruled India since independence, India would have been a $40 to $50 trillion economy by now at a growth rate of 7.5%. In other words, Indians would have been on average 20 to 25 times richer. That is the price paid for electing the wrong folks.

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    1. For first forty-fifty years, we pretty much did not have choice except electing all “Bamboos” in the name of Congress. What is surprising is, we, Indian voters, fell for false promises and re-elected Congress and its fellow corrupt parties in 2004. If we don’t learn from the history, we could repeat that mistake.

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      1. Yes 2004 was a big mistake by Indian voters. As Prof. Vidyasagar mentioned, the rapid inflation from 2004 to 2014(especially after 2009) ate away most people’s savings (especially of retirees). Those retired or about to retire have to ensure BJP wins in 2019. Else their money will be swallowed by the monster inflation the non-BJP front will create.

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  7. What would go from your pocket for a rise of 8% rise in petrol.
    I remember very well the price of rice one year or so before 2014 has gone up enormously I think by more than 30%. Which is mass consumption and no one to Question.
    This way only they target BJP because they don’t have any real stuff to Tell the public

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  8. The crowning irony is that Congi’s have called for a Bharat Bandh on Sep 10, to protest against rising fuel prices ! This is a wicked but brilliant tactic, and unfortunately it will be hugely successful – unless the government can counter it credibly and aggressively !

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  9. Present the facts before people in a simple language they understand and ask them to make a choice. The facts:
    Preamble:
    UPA sarkar gave us negative bank balance running in to lakhs of crores due to scams that ran into lakhs of crores fillign their personal pockets. We inherited absolutely failing economy that was classified as the ‘most fragile 5 economies of the world’.
    Its the cricket equivalent of first innings deficit of 1000’s of runs to over come and a wicket that is dangerously spinning out of control with cracks all over the pitch.
    With all these above difficulties we achieved the following:

    1. Scams eating away people’s money running into rupees lakhs of crores versus a scam free government where every rupee is spent for the growth of the nation and welfare of the people.
    2. What the UPA era meant to your hard earned money and savings — Your 100 rupees is only worth 5 rupees in 5 years versus your 100 rupees is still worth 95 at the end of 5 years. Which means your hard earned savings could buy you nothing that you have been saving for.
    3. An era of literally darkness in villages versus an era where every village has electricity and brightness.
    4. An era where terrorist attacks occurred with regular frequency in every major India city versus an era where terrorists are on the run hiding and no major terrorist occurred with so many lives of innocent citizens saved.
    5. Loans of thousands of crores of bank money handed over to cronies versus recovery of thousands of crores from the cronies. Redistribution of the loans to small time vendors and bussiness through Mudra Yojana which generated crores of self employment opportunities empowering the poor class to dream big and make it big.
    6. 65 years of misrule when basic sanitation facilities were denied to citizens versus every house and every village has toilet facilities.
    7. Neglect of soldiers who fought and sacrificed their lives for the country versus a government a that cares and values their contributions – One Rank One Pension — scheme sanctioned and implemented.
    There are just too many achievements to be listed here the above is just a sample to contrast the achievements in the face of the massive deficits and empty treasury that the government inherited from UPA.

    End line: Now imagine what we could achieve together in future, by voting for BJP and bring BJP back to power ….
    The alternative is back to the dark days and this time with more viciousness than before…
    You decide… ball aap ke court mein hai….

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