The Hindu Business Line : Fuel price hike

The hike in petrol and diesel prices was not unanticipated. The Left's opposition to the hike seems only symbolic. The public outcry and the protests of the Opposition parties are being ignored with impunity. The people have now to be prepared to shoulder fresh financial burden in the form of increase in bus and truck fares, with a cascading effect on prices of commodities.

K. V. Seetharamaiah

Hassan

The Government must examine other measures to avoid frequent hikes in oil prices. All public-sector oil companies should be merged to reduce heavy overheads and expenses on advertisements by them. Since the Government itself is the biggest consumer of petrol and diesel, measures should be taken to cut fuel consumption. Only fuel-efficient small cars should be purchased and financed by the Centre and the State governments.

Rounding off prices of petro-products can increase revenue without affecting consumers' pockets much.

Madhu Agrawal

Delhi

By increasing fuel prices, the Government gains by collecting more tax.

Considering that the levies make up about half the retail price of petrol, the Government should have absorbed the crude price rise by cutting Excise and Customs duties rather than increasing retail prices of petrol and diesel. The Left should show the way by reducing the sales tax on petrol in States ruled by them. If the sales tax at 26.4 per cent in Kerala is reduced to 20 per cent, that alone will reduce retail price in Kerala by Rs 2.30; halving the hike announced.

A. Jacob Sahayam

Thiruvananthapuram

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