One of my danish colleagues had remarked that our country, instead of helping the poor & taxing the rich, was subsidising the car users with lower fuel costs since all oil imports were being sold at lesser price than what they actually cost in India.
I had explained to him that the fuel being consumed by cars were actually leakages from the subsidy that was meant to help keep transportation costs of basic & essential commodities low to help the poor.
He then asked why a system could not be evolved where car fuel was made expensive & goods transportation costs kept low to remove subsidy entirely. I did not have any satisfactory answer for this since there really was'nt one - The real truth is that this would generate yet another venue for corruption, but I chose not to venture out for a discussion in that territory.
Any ideas on how this could be done without any corruption ?
Car Fuel Subsidised
- Naveen's blog
- Login or register to post comments
Forward this Blog entry
Praja.in comment guidelines
Posting Guidelines apply for comments as well. No foul language, hate mongering or personal attacks. If criticizing third person or an authority, you must be fact based, as constructive as possible, and use gentle words. Avoid going off-topic no matter how nice your comment is. Moderators reserve the right to either edit or simply delete comments that don't meet these guidelines. If you are nice enough to realize you violated the guidelines, please save Moderators some time by editing and fixing yourself. Thanks!
Comments
Economics of Fuel subsidy!
http://www.khaleejtimes.com/DisplayArticleNew.asp?section=business&xfile=data/business/2008/june/business_june243.xml