Two separate but not-very-unrelated news stories have appeared in this morning's dailies. One reads: 'Car, two-wheeler sales go up in May'. The other headline says:'PM readies pitch for hike in petro-product prices.'

Indian roads are already crying for relief. The seams might burst at any time. Yet, everyday, thousands of new cars and a larger number of two wheelers hit the already congested roads. Even if diesel sells at Rs 150 per litre, our roads will not be deserted. We have seen and suffered several rounds of fuel price hike and have been mute spectators to the ever-increasing number of vehicles on the road. Thus it is crystal clear that there is going to be no reduction in overall demand. We .Indians are now accustomed to use petroleum products in our day to day life. It is now too late in the day to revert back to our (g)olden days. We cannot get back on the bullock carts, leaving the Marutis in the garage.

Then why is the Government reluctant to do what the rules of economy dictate. In a couple of months, our public sector oil companies will have no liquidity to import oil. Until May end, they were incurring a loss of Rs 580 Crores A DAY on sale of petro products. From this month, their daily loss is estimated to be a staggering Rs 650 Crores!.

For a quarter of an year now, we have been discussing the hike. Hectic consultations were held at the highest level in the Union Government during the past fortnight. And Finally, we are almost certain that the inevitable is coming. The Prime Minister has ruled out further subsidies. "We cannot fully insulate the consumer", he has unambiguously declared, though belatedly. "We cannot allow the subsidy bill to rise any further", he said. Of course, his political compulsions are understandable. He cannot wait anymore for the elusive political consensus. It is high time the Government acted.

The demand and supply alone should decide the price. That is the only way to sustain our economy in the long run.