The government of India is considering to raise petrol prices to actual market prices even[an increase of about Rs.10-15 per litre] while leaving diesel prices unchanged.I don't know what sort of an idea is this.The idea is so shortsighted only a politician can think of such an idea.New car owners will just shift to diesel and its only the people who have already bought cars and bikes who will end up paying.Diesel consumption would go up and the entire benefit to oil marketing companies will come back to zero.Such a huge difference in prices in petrol and diesel would hit the 2 wheeler manufacturers the most and its just a matter of time before we see them switching over to diesel also.
What is needed is to discourage both petrol and diesel consumption in an equal manner.Subsidies should only be provided to licensed transporters and for public transport use.A dual pricing strategy which is no doubt open to manipulation is the need of the hour.No use harassing only one segment of customers.
Now for long I have wanted to talk about this but have not found an appropriate forum.Oil marketing companies should start charging for filling air[anyways we end up tipping the person there].Oil marketing companies should also keep looking at other avenues for revenue generation like setting up fast food joints etc.
Now a drastic increase is unlikely[of the magnitude of rs.15] but still have a hunch that the government would go ahead and raise prices of only petrol.
