Fuel Price Hike - A positive step or a blunder

I heard people saying that the government of "Aam Aadmi" is bringing higher inflation raising the price of the Fuel and decontrolling it. I would like to lay down some general theory about that:

Bad effect of fuel price hike:

1. Higher inflation i.e. food will get expensive for the middle class as higher class its really affects and lower class gets food at cheaper rate by the Government.

2. Over burden on government to supply food to low class at the cheaper affordable price.

Benefits of Fuel Price Hike:

1. Transportation cost is high so local goods will get an edge in the market. This will led into expanding of local markets means more employment for the local people.

2. Lesser the use of fuel better for the environment.

Ill Effect of Decontrolling:

1. Company will decide there own rates at their own time, this will lead to uncertainty in the transportation cost which might result in losses in import and export business.

2. Government lose one parameter of controlling inflation.

Benefits of Decontrolling:

1. Government do not have burden of giving cheaper loans or stimulus to the oil companies.

2. This might result in competition between oil company to control their rates and give cheaper oil. This might bring options for consumer.

So, I hope you got my point that it has many advantages as well as disadvantages. It will be interesting to see the result of it which will effect not only people but the government which has won the hearts of people twice and hoping to win third time in 2014 Lok Shabha election as the LPG and Kerosene (which is used by "Aam Aadmi") is still kept lower than the market price and the price in other nations.

This also give us the moral that everything has a bad and a good side so we should look a the good side and stop our dependency on oil. Its not easy but if consumer demand company will provide them with solutions like CNG, Electric etc.

In the end, nothing can stop growth in such a fast technology growing country and such speed breakers (Fuel price hike) can only slow us down for a very short period of time and we know how to regain better growth.