Sunday, August 3, 2008

Oil Crisis

The oil crisis has been going on for sometime now and there is no chance of prices coming down anytime soon.
But instead of government trying to protect the poor and the growth of country, its taking steps which cant continue for long.
First question I would like to raise is that why when Diesel and LPG are subsidised, are personal cars allowed to run on it.
Secondly why is the licence same for tempos trucks and sedan taxis?

Here are some steps which I think can handle the problem in such a way that the poor and growth of country is protected.

  1. First of all, only petrol vehicles must be granted Private licence of vehicle.
  2. Next licence of trucks should be separate which should have no annual fees.
  3. For vehicles of mass transport (buses, tempos, autos), fuel should be diesel or CNG (depending upon the area they operate in) and their licence too should have no annual fees.
  4. For commercial taxis, all fuel options should be allowed and they should have licence with annual fees.
After this for pricing of fuels the following steps should be taken:

  1. Price of Diesel, LPG and kerosene must be fixed at reasonable values.
  2. Price of Petrol can fluctuate with International prices and can be such that they provide the government with whatever revenue they need.

I know this will be debated by the middle class (myself included), but this is the best option available. To insulate the industry and poor from price hikes.

I am always amazed why personal vehicles with diesel as fuels are allowed when diesel is subsidised by government for industrial growth?

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