Initiatives to tackle oil crisis (Letter)

  • 16/07/2008

  • Tribune (New Delhi)

I fully endorse the views in the editorial, "Tax luxury'. Hiking the excise duty on big cars, multiutility vehicles and sports cars was overdue. Several other initiatives are required to tide over the oil crisis. Petroleum companies can absorb the oil shock by tightening their belts. There is no justification for public sector units like the HPCL and the BPCL to squander away lakhs on advertisements. For reducing the cascading inflationary impact of fuel prices, diesel price is kept relatively low which has led to surge in demand for diesel cars. Let the rich pay economic price of fuel and not enjoy the subsidy on diesel. For this the diesel version of the private vehicles should be banned and the use of diesel should be restricted to heavy vehicles. The subsidy on LPG should progressively be reduced while targeting the subsidy on kerosene used by the poor. This will discourage the misuse of the domestic LPG for heating water in geysers and also its diversion into commercial use. Why can't the government move towards a moderate specific tax structure (based on quantity) in place of the present ad valorem taxes (based on price) which bring additional revenue with every increase in the fuel price? The people should pay economic price so that fuel conservation becomes a practical necessity. The best way to wean people away from private transport is through an efficient public transport system. RAMA KASHYAP, Chandigarh II The unprecedented price rise is mainly due to the liberal policies of the Centre and the states coupled with hike in the global oil prices. I suggest the following remedies to check prices. Since the global stock of petroleum is decreasing, petrol should be rationed in the country. The states should control the prices of milk, vegetables, edible oil, fuel, soap, bricks and electricity. The common man's burden would be greatly reduced. The Opposition parties should suggest ways and means to counter price rise for the good of the poor. People should cut down their budget upon items whose prices have risen. Let us believe in