Why Aren’t People Protesting Severely Against Fuel Price Hikes in India?

There’s an ongoing debate in India regarding the increase in fuel prices and why there hasn’t been a significant and widespread protest against it. Some people may find this surprising, especially given the high costs of living and the importance of fuel in everyday life. Let's delve into the reasons behind this phenomenon and explore the underlying factors.

Adapting to a Changing Scenario

For many individuals, the transition from private car ownership to public transportation has been a mixed experience. While it alleviates several issues—such as standing in long queues at petrol stations, overspending on car maintenance, dealing with insurance claims, and the stress of navigating traffic—there are still challenges. Switching between different modes of public transport can be cumbersome, and it often leads to being stranded or dealing with overcrowded public transport options.

The Impact of Social Media and Government Moves

Last year, social media platforms witnessed a widespread uproar regarding fuel price hikes. While there was initial outrage, the government responded by slashing taxes on oil, primarily as a “Diwali gift” to the nation. Many leading newspapers hailed this decision as a “Diwali Bonanza.” Surprisingly, a large segment of the population remained supportive of the current government, despite the potential negative impacts. The government's actions, such as reducing heavy taxes, demonstrated a practical rather than monumental response to the issue. This lack of a more significant reaction might have contributed to the minimal protests.

Familial Resilience and Economic Strategy

India’s economic resilience lies, in part, in its strong culture of family savings. This tradition, which has been ingrained since the mid-20th century, has played a crucial role in mitigating economic crises. The family savings pool, built up over decades, has gradually been eroded, with the depleting trend significantly accelerating after 2009. This gradual depletion has become more noticeable as the economy has moved towards a more market-oriented structure, where costs typically rise much faster than financial returns from savings accounts or other investment opportunities. Despite this trend, many middle-class families continue to survive by drawing on their savings, though the financial strain is evident.

Government Policies and Public Apathy

The government’s approach to addressing fuel price hikes has been relatively tame, focused primarily on reducing taxes rather than implementing substantial changes. For instance, some states impose taxes that amount to 50% or more of the fuel price. This has led to the notion that India needs to adopt new strategies and explore alternative markets or domestic reserves. The reality is that, despite these price increases, the necessity for fuel means that consumers will continue to purchase it, regardless of the protest or governmental actions.

Conclusion: A Call for Policy Reevaluation

In conclusion, the lack of severe protests against fuel price hikes in India can be attributed to a combination of practical government responses, the resilience of family savings, and the perceived lack of immediate alternatives or effective protests. However, this does not mean that the issue is being overlooked. There is a growing awareness of the need for more substantial and inclusive policy changes to alleviate the burden on consumers and ensure sustainable economic growth.