Concerning Mr.Vajpayee, Subsidies, Petroleum products...

Topic started by Vishvesh Obla (@ on Tue Mar 19 09:45:45 .
All times in EST +10:30 for IST.

Mr.Vajpayee in a recent speech has alluded to the subsidies and how they undermine our economy. He was also referring to the recent hike of LPG. Now what strikes here is that successive governments in the center have been talking notably on these subsidies factor only after India started “opening” its economy to match the model of a “globalised” economy. This is an issue which cannot be discussed within the confines of a discussion here, but it is wiser if we look at what constitutes “subsidies” themselves. The biggest claim of subsidies, that our governments project today, come from oil. Oil needs to be imported to the tune of 60% of our needs and when it is subsidized it makes a big dent in our economy by the sheer involvement of foreign resources associated with it. Sounds very reasonable. But then one question comes to mind. Are we getting any real subsidy and if so, is it reaching properly ? US never gives any subsidy on Petroleum products, but how come the price of petrol is not more expensive than that as it is sold in India in terms of its international price ? And we see here in US, that it sometimes goes amazingly cheap, because of its fluctuation in its international price. In such occasions it is quite natural that a huge amount of money is saved which could be used as a buffer in times of trouble. Where goes all this ? It is sickening to see successive governments trying to give you such excuses and that they go unquestioned too. If Diesel is supposed to be visibly subsidized, what is the very rationale in allowing automobile manufacturers to manufacture Diesel models, when the prime purpose of Diesel in India is for public transport and transport of essential goods ? (Even Mercedes models in India which cost around 25 lakhs in Indian Rupees are/were allowed to market such models !). Aren’t we defeating the very purpose of our model with our own mismanagement ? Every time there is a hike in petroleum products, it affects badly the common man in India by the associated hike in prices of everything necessary for living. And this hike, as we see, is propelled much more by our mismanagement than any “subsidy” issues. Not to mention the other concealed issues behind our forced dependence on foreign sources for petroleum products ! And how these clever political leaders get away scot-free even after making such statements !!!


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