Gas prices hiked from next month

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Source: in.reuters.com/article/2014/03/21/india-fertilizers-subsidies-idINDEEA2K03J20140321?feedType=RSS&feedName=topNews

Seems like because of this move, even the food prices will probably double in coming months.
Reading the source I see it as this
Gas price hike -> urea price hike -> food grain wholesale price hike -> retail food grain price hike -> hike in subsidies-> hike in petrol and diesel prices -> full burden on end consumer in form of extra taxes while prices of everyday goods increases.

What do you guys think will happen to the economy after next month? I feel like govt is slave of corporates now. Is there a need to increase price of locally produced natural gas to international levels when the country's population just cannot afford it?
Just now the retail inflation came down from 11+ to around 9 this month. In April its sure to go up again. Probably hit a record.
 
Looks like they side stepped the issue cleanly. Natural gas is used for cooking. Mahanagar gas is natural gas. Its not lpg. Also they haven't talked about where the price hike will form a cascading effect. They just gave a diplomatic answer.

http://en.m.wikipedia.org/wiki/Mahanagar_Gas
http://articles.economictimes.india...uge-gas-gas-allocation-krishna-godavari-basin


From economic times link we can make out their main consumers must be power & fertilizer companies. So hike in rates will increase power tariffs and fertilizer prices directly.
So end people like us are in same situation like today but only worsened more. We'll end up paying more for rice, vegetables sugar etc.
Plus add to that higher electric bills due to increase in slab rates.
 
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