The indian consumer, already hit by record levels of inflation are looking down the barrel of another fuel hike.
In spite of the election centered manoveuring of the UPA government, we are seeing a situation where price rise is inevitable. The government companies that handle distribution of petrol, diesel and natural gas have had to bear enormous losses every day because of the highly immature policy of the government.
As a consumer, it is good if all of us keep ourselves in readiness for successive price hikes. In order to reduce the impact of such hikes, it may be wise to buy shares of the Oil Distribution PSUs like IOC, BPCL, HPCL and Petronet LNG. Hence, if petrol prices rise, our wealth will also increase due to higher values of these companies.
This strategy may act as an effective hedge against price hikes of fuel.