Friday, 18 January 2013

Sky rocketing price of fuel

Diesel was subsidised for all consumers in India. This subsidy was meant for farmers who run tractors or motorised water pumps and other farm machines. But rich urbanites bought luxury cars (which run on diesel) and used up our supply of diesel excessively. Government went on and on giving subsidised diesel as it did not want to affect the production process of farmlands. Subsidising and giving at a price lower that the market price has exhausted the government. To put an end to this, market prices will be charged for diesel. Now the government will be saving 12000 crores of Rupees. Diesel prices have gone up exorbitantly. It was Rs. 47 .15 per litre; but now we are paying Rs. 58 per litre. But this will affect the farmers adversely. And all consumers have to pay more because all items arrive at the market by diesel driven trucks. Transport charges(from home to place of work) would increase as buses are also run by diesel. The middle class has to pay for it dearly.
 The rich would still use luxury cars and price rise is not going to affect them. Farmers will be affected greatly as they have to pay higher for the fuel. Increase in cost of production means higher market price.Price of fuel is too much for the average citizen. When we make policies, we cannot make one which would affect only one class of people, it would affect all. The weakest feel the hurt of price rise most. All subsidised commodities would ultimately be sold at market price. How long can a government afford to go on subsidising? As consumers we should not assume that subsidisation would last forever. Then this disappointment would not be there. If government builds roads, it is a big thing. But how to travel without cheap fuel?The poor will not be able to travel to work and ultimately the government has to face lesser national production.So,situation is bad. Government cannot give susidised fuel, so it will have to face loss of lesser production.

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