The hike in the price of petro-products announced by the UPA Government has led to agitations and bandhs all around especially in non-Congress ruled states. If we go by the version of the Govt. this hike had become necessary to save the Oil Companies from bankruptcy. Even the Reserve Bank of India has termed the hike in petroleum products as a step in the right direction. But the country is already facing an inflationary pressure of the worst kind which has touched a figure of 8.24%. Prices of essential commodities have shot up thereby making the life of the common man miserable. In such a scenario the unprecedented rise in the prices of the petrol, diesel and LPG cylinder will virtually push him to the wall. The ball has been thrown in the court of the States to give relief to the common man by reducing/abolishing the State taxes imposed upon these products. Some State Governments have already taken this step others may hopefully follow suit. For instance in Delhi the consumers will have to pay only Rs.10/- extra over what they are paying now. The rest of the burden the State Govt. will bear. Sales tax on petrol and diesel has also been reduced. However, demand from opposition ruled States especially those ruled by the Left parties is to withdraw the price rise altogether. How far the UPA Govt. at the centre is able to accede to this demand remains to be seen. The Prime Minister has also advised his ministerial colleagues to effect economy in administrative expenditure on items like traveling particularly air travel and foreign tours. Accepting Prime Minister's advice Union Minister T.R. Balu is reported to have cancelled his foreign trip. Dr. Manmohan Singh further advised to effect economy in petrol consumption by resorting to pool system. As a matter of fact these measures should have been adopted earlier as there is no denying the fact that there is immense scope to effect economy in administration and traveling and transport expenses alone work out to a fabulous amount. The Chief Minister of Madhya Pradesh and his cabinet colleagues through a unique way of demonstration against hike in prices of petroleum products pedalled to Mantralaya on cycles. Taking a cue from our worthy Chief Minister if most of us use cycles to the extent possible (and this should be encouraged) we can kill two birds with one stone i.e. one, we will be saving petrol/diesel and two, we will be working towards a pollution free environment which is another formidable problem facing the mankind. Lastly the proclaimed hike in the prices of petroleum products might seriously impede the prospects of the Congress which has lost successive elections held in the past few months. In the chain of defeats Karnataka is viewed as the most serious blow. How the party retrieves its position only the time will tell. Dr Balak Ram Kashyap