The buzz in India (besides the IPL!) is about the petrol price rise. How about putting together some ideas on this - if it was warranted, could have been avoided, and how?
From 1955 when petrol was 0.58 per litre to the present day Rs 73.23, things have definitely changed. We now have over 13 million cars on our roads and this is projected to hit 611 million by 2050 when India will have the biggest number of cars! It clearly shows increasing purchasing power. A larger number of the population can afford the gadgets that make a lifestyle energy-intensive. Salaries too have gone up and according to some experts, the price of petrol or electricity has not increased commensurately. Neither that of vehicles. If 30 years ago, an engineer earned a salary of Rs 1600, the price of petrol was Rs 7-8. But today, a fresher engineer with little experience can earn around Rs 30 k while petrol is Rs 73. While salaries have gone up by 20 times, petrol rise has been less than 10 times.
So are we creating a demand for energy and making it available at unsustainable subsidised rates? It does seem that the price rise will enable some amount of energy conservation. Or won't it?!
Should we adopt a Singapore model where, a six-point formula tries to limit fuel consumption. Make automobiles costly; vehicle loan interest rates high; a fine for low occupancy of cars; expensive parking zones; no company cars for staff; and finally a cheap, fast and comfortable public transport. Clearly the last here should be cited first.
Or should all vehicles run on diesel? Will that help? Or a rationing of petrol (tough in a democracy)? Shift to gas-based vehicles? With many high-end private vehicles running on the highly-subsidised diesel, should we have a dual pricing for diesel - one for the farmers and public transport, and another for private vehicles?
What is your take?
From 1955 when petrol was 0.58 per litre to the present day Rs 73.23, things have definitely changed. We now have over 13 million cars on our roads and this is projected to hit 611 million by 2050 when India will have the biggest number of cars! It clearly shows increasing purchasing power. A larger number of the population can afford the gadgets that make a lifestyle energy-intensive. Salaries too have gone up and according to some experts, the price of petrol or electricity has not increased commensurately. Neither that of vehicles. If 30 years ago, an engineer earned a salary of Rs 1600, the price of petrol was Rs 7-8. But today, a fresher engineer with little experience can earn around Rs 30 k while petrol is Rs 73. While salaries have gone up by 20 times, petrol rise has been less than 10 times.
So are we creating a demand for energy and making it available at unsustainable subsidised rates? It does seem that the price rise will enable some amount of energy conservation. Or won't it?!
Should we adopt a Singapore model where, a six-point formula tries to limit fuel consumption. Make automobiles costly; vehicle loan interest rates high; a fine for low occupancy of cars; expensive parking zones; no company cars for staff; and finally a cheap, fast and comfortable public transport. Clearly the last here should be cited first.
Or should all vehicles run on diesel? Will that help? Or a rationing of petrol (tough in a democracy)? Shift to gas-based vehicles? With many high-end private vehicles running on the highly-subsidised diesel, should we have a dual pricing for diesel - one for the farmers and public transport, and another for private vehicles?
What is your take?
Posts
No comments:
Post a Comment