Skthewimp takes a swipe at the UPA government’s policy of keeping petrol prices unrealistically low by levying additional income and corporate tax to balance out things. He’s worried at the lack of any signals sent out by the government to the people that gas is a precious commodity, and that one must consume it responsibly.
[This] indicates that demand for petroleum products is elastic. How are petroleum products elastic? If petrol costs more, you might drive less and use more public transport. You might use the cooking gas more economically, and only when absolutely necessary. You might try and cut down unnecessary trips. You might use your bike instead of using your car. You might buy a more fuel-efficient bike.
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D.V.Nair
Jun 2nd, 2008 at 2:30 am | #
I share Aditya’s concerns regarding the continued policy of subisiding the petroleum products.At the same time, we must remeber that India is a country where subsidies, reservations and quota system is the order of the day. So much so that we have different sects and communities resorting to violent protests demanding quotas.
I believe, it is time to do away with this practise and replace the same with social safety networks based on the financial status of the individuals and familes in this country.