The petrol price hike is a bold decision by Congress and a step in the right direction towards restoring the fiscal health of the country. The biggest thing that could go wrong is that Congress could have again got its political equations wrong and be forced to roll back the hike.
The bitter memory of the government opening up FDI in multi-brand retail and then reversing it after a few days is still fresh in the mind.
Opposition BJP and the so-called allies, Mamata and Karunanidhi, would definitely be plotting their assault on the government now. And, with the pain that all three have caused the government in the past, their capability to derail the price hike should not be underestimated.
However, it seems that this time Congress might have got its equations right. First Post did a great story yesterday, With Mulayam on its side, UPA won’t need Mamata anymore, identifying this change in the political equations.
Of course, political equations are very dynamic and uncertain, and one can never know what new equations could develop overnight.
But one thing is certain, if Congress is able to push through this price hike, that would mean a major change in the political landscape of the country.