If i may use that word is the best word to explain the stand of the Government on the Issue of Petroleum. Why this statement? This might be the question that immediately arises in the minds of every reader.After all the Government provides subsidy and there is no problem here.
Well i have a reason for saying this, the Government says that it is providing a lot of subsidies and it is doing so for the welfare of the people. Well, i beg to differ. Last week one of my friends who lives in Canada called me up. We had a long discussion and during the course of that discussion he said that it is becoming increasingly difficult to maintain a car in Canada as the price of a litre of gas( their term to refer fuel) has touched $1.33(Canadian dollar). Canadian dollar equals 40 INR and a simple conversion would reveal to us that we are acutally paying more for a litre. So where is the subsidy?
Taxes levied on Fuel by State and Central Goverments alone come to Rs 28 in the case of Petrol and around Rs 20 in the case of diesel( Figures are approximate, readers please help me out with acccurate figures). So the Government is using this as a revenue earning mechanism. To offset this the Government is making the Oil companies to suffer.Now there is a big problem with this approach.
This approach means that the Govt earns more if we consume more fuel. Now isnt this a recipie for disaster? Crude we all know is a non renewable resouce and the Govt shd actually try and encourage the saving of Crude. On one hand the Govt through the oil companies call for Lesser Consumption and on the other hand we have Govt encouraging auto companies to come out with more cars through friendy policies. So what exactly is it conveying? I am not able to understand. Can someone help me out on this???
P.S: Although Off topic, i would like to see the Govt spend a lot on Public Transport System, do away with subsidies on Kerosene and Diessel. Slap car owners with a tax for using a lot of the road space and causing congestion. But will all this or rather any of this happen???
Note:The US and the West are now finding it difficult to make ppl use Public Transport systems, as people have got used to the mindset of travelling through Car. More cars on the road is surely not the way to show our development. The sooner we understand this and we develop a better system it is better for not only us but also for the coming generations. And if we dont and succumb to the pressure of our Auto Lobby( as the West did and still do to a gr8 extent) we are going to get doomed.
2 comments
Hello Kalcha, Wow, gr8 to hear from u after a loooong time. Am fine,just going on with the routine stuff, how about u?
Reg the topic, yes i do agree that if the Govt lets the rupee appreciate the economy will be hit although our import bills will become much lower.
The root of the problem is that we have got satisified with the easy money, Wen Manmohan Singh let the value of rupeee fall against the dollar it made Indian Companies survive and grow, but once the growth started kicking in the companies should have moved into the next level of High End services, rather they chose the easy path and the Govt too in lookout for easy money, did not take the necessary actions, and now we are stuggling.
Ethanol story for Brazil, might be Solar story for us but the saddest part is no research is being encouraged.
But as they say "Necessity is the mother of Invention",so we might have some substitute out of compulsion.Lets Hope.
Keep coming and give ur valuable thoughts Kalcha. Gr8 to see u. Expecting u to see here often.
