Business Daily from THE HINDU group of publications
Monday, Dec 22, 2008
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Monday, Dec 22, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Petroleum Web Extras - Policy Columns - Sticklish Issues Oil price cuts
The reduction in the prices of petroleum products announced by the Government is only symbolic; crude oil prices in the international market have crashed to less than one-third of the peak last September. The heavily subsidised petroleum products should benefit only the poorer sections of the population. It is time that luxury car users were charged at reasonably higher rates. The graded system of pricing will benefit the public. A system can be evolved for the equitable distribution of subsidised petroleum products to stop draining of valuable foreign exchange in the purchase of crude oil. — *V. S. Sankaran, email Petrol and diesel price cuts alone are not enough. The cuts should help reduce the prices of products that have witnessed a price raise earlier. Seems the whole thing is a political game. — Ramji, email The fuel price cut is too meagre and too late. It is but a small booster shot to a sagging economy. Further cuts in fuel prices will stimulate cost reductions of vegetables and other commodities. Dr V. Ramjee, email The reduction in prices of petrol and diesel is not adequate as the same is not commensurate with the decline in global crude oil prices. The current cut has just neutralised the June 2008 hike. The people, therefore, have really not been compensated. Hence, further price cuts of Rs 8 for petrol and Rs 5 for diesel must be effected at the earliest. There is need for a rational pricing mechanism in India. . — Dr K.K. Ammannaya, email The cut in petrol and diesel prices is not in proportion to the fall in international crude oil prices. Petroleum companies would have nearly wiped off the accumulated losses during the last few weeks, with crude prices having fallen by more than $100. The Government should come out with a statement showing input and output costs of petroleum products by major oil companies as even when crude prices were high the companies were declaring dividends and had shown profits. The purpose of the Government running such companies is that the public should get products at reasonable prices. — T.R. Anandan, email Cutting down the prices is a sane decision, given the gloomy scenario. But by how much is a debatable issue. These cuts will suffice for the time being, but certainly may not be the right quantum in the long term. — Ashok Jayaram, email More Stories on : Petroleum | Policy | Sticklish Issues
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