Fuel price hike

I think the price increase decision is in compliance with the free market economy but the government could have done better if the increases were done in multiple phases over a period of time.

Higher fuel price is never good for any economy. Higher rate of inflation is looming at the horizon across the industries. In short run, the significant rise in inflation will have negative effects on the agricultural sector because it will be hard for the poor farmers to bite the bullets [in the form of higher fuel price]. I am not an advocate of providing subsidy but I feel the government can do something to mitigate the sufferings of those poor farmers. Providing subsidy in a particular sector is the precursor to creation of a black market and it will lead to loss of revenue for the government. So, what can the government do? The government can ensure fare market price of agricultural output during the harvest season among other measures. In the long run, the government has no choice but to raise the prices of fuel to keep up with the prices in the global market.