Tuesday 15 November 2011

Fuel economic growth and development

We import 80% of our petroleum from foreign countries. We have to pay 40% tax on it also And state government levies more tax in addition to central government tax.LPG (used as cooking gas) diesel for tractors, and kerosene were not taxed.Two weeks ago petrol prices were increased by Rs.1.80 per litre. Allowing high fuel prices meant that oil companies charged as much they want and the price rise strangulated the people.The government allowed it. We cannot function without fuel, tractors have to plough,trucks have to deliver goods, people have to go to work, and children must travel by bus to school.We had to buy fuel at higher rate  than international price. The Indian public has been tolerating the raising of fuel prices.In 2011, it was raised six times. 
Government awakened when its future was at stake- questioning of the rise of cost of petrol.When the issue of increasing price of fuel was questioned repeatedly, new ways to deal with the crisis were explored.When there was small reduction of fuel prices in the world market, government passed on the new low price to the  the people. We are now relieved.The three oil companies will meet to make guidelines for reduction process under government's supervision. Government is the chief stake holder in these companies.The government 's oil ministry was noting the exchange rate of the Indian Rupee and bulk rates of crude oil.Brent North sea crude reduced 61 cents to a 113 Dollar barrel,reduced price 23 Cents in a 97 Dollar barrel and Singapore market dropped  to 115 Dollar barrel from 125 Dollar a barrel. This made us realise that our oil companies are making big profits while pretending that there is an international price rise of crude oil. Activities of oil companies have to be constantly checked to see if they are doing correct changes.We have to depoliticise the oil companies and government has to be counter-checked also.Only uniform mindset is the "pretending or show of concern for the common man" for only then votes can be obtained.
Who will pay for the lapses? Always,its the people who pay for mismanagement of the government.Any change in the economy of the world, and the poor class in India are the worst affected.Fuel makes a major part of our incomes(12%); next to expenditure on food.We cannot cut down the cost of transport as we have to travel for work.Although only 1% of India owns cars, one  percent of a big population like ours is a big number. And 5% depend on two wheelers which need fuel too.  
Cost of fuel must be monitored and monopolies must be checked. If economy has to grow and industrialization has to take place basic needs should be fulfilled and fuel has become our basic need.International fuel prices were very low six months ago but we have no facility to store it. Private oil companies dealings have to be tracked. Raising fuel prices and decontrol  of market prices and fooling the public will not be tolerated by the educated public. The politics of petrol price rise would be the cost of progress, making of the infrastructural projects would be delayed and the ordinary people will become more impoverished.This would be the result of faulty fuel policy.

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