1. The root cause is 1. Govt. encouraged population explosion, 2. excessive consumption by Govt. Agencies and their un-accountable politicians, 3. and 4. Auto ndustry which wants expansion without usage (look what is the kilometre usage of average pvt. indian cars (other than Govt. and companies) vis-a-vis developed countries. A whitecard holder can spend 500/-pm on cell phone but not on rice and kerosene. Whither Indian Governance.
Never before prices of all goods and services been so high as during the tenure of this government .How could one justify free market pricing alongwith such high taxes on petroleum products .
Rather than reducing corruption and Govt. expenditure.. this Govt is just focused on increasing prices.. That's the easiest solution, but it's harmful as well..
1. The oil companies are inefficient. The salary paid by these PSU companies is the highest salary paid in India. It is even better than many pvt. companies, without any performance guarantee. 2. The reports have come in the past that these companies have paid salaries of over 15 lacs p.a. even to Class IV employees. Check their published reports. 3. The Tax being levied by govt. is highest amongst all goods. There is no subsidy. Govt. collects more tax on petrol than the subsidy. 4. Even pvt. oil companies which came to mkt. were the biggest thieves. They were happy selling oil @ the rate of PSU companies, and were minting money.
Diesel: subsidy required because of the use in public transport & material transfer. It will affect directly on price rise of essentials(until the income of poor families increase)
All other subsidies unjustified.
1. Petrol: Why tax payers should give subsidy to car/Bike owners.(A person should't use his private vehicle if he is not ready to pay the actual coast of fuel/he can use public transport.) 2. Kerosene: The majority of subsidized fuel go to black market, used to adulterate diesel & smuggle to Pakistan/Bangladesh.(If government give money/job directly for poor(NREGA) it is better than this subsidy.) 3. LPG: Real poor is using firewood & cow dug as their fuel. Rich & middle class getting subsidy of about Rs 250/LPG cylinder. They have money to spend on multiplexes, branded cloths, alcohol, party etc..& they need LPG subsidy.
Always subsidy should be given for the people who deserve it; not who need it.
Writer says that "can not afford to encourage excessive consumption of energy based on unrealistically low prices". He can sy/write this because most probably he has not to stand in queue for buses and railway tickets. U want people to pay more, which they are already paying by way of high taxes levied on petroleum products, to stop excessive consumtion. If consumers becomes non consumer ur economy will come to halt. where will u get taxes from? U can double the rates and taxes, but before that create an infrastructure, which common man can use at a reasonable rate. Poor management, corruption and lavish expenditure of Oil companies adds to the problems. People r forced to use their personal transport because public transport is as healthy as mentality and honesty of our piliticians and civil servants. create a decent infrastructure and raise taxes.. but till then give common man some reprieve by not burdening with high energy charges.
As Govt and private oil companies now will sell the fuel, it will be a war like mobile companies offering at cheap rates with value add services as model...similar revolution will now follow in the petroleum industry!
Re: retail war now begins
by balkrishen pandit on Jul 01, 2010 12:42 PM
ur statement is misleading, mobiles, mobile towers can be manufactured with technological innovations at regular intervals, but manufacturing of fossil fuel is beyond one's reach. Deregulation in future may lead to voilent protests and political gimmicks
