Government may consider Bio-Diesel

Diesel has been bleeding the oil companies and inspite of the raise in prices there is still a long way to go to overcome the under recoveries.Diesel being the lifeline of the country because of its mass usage in public transport,transport etc the Government just cannot increase prices to desired levels.

In order to overcome this problem the government is deciding to sell less diesel.No don't worry we are not taking about rationing but mixing of diesel with other bio-fuels[like the extract from the jatropha plant].Why diesel is because its diesel that forms the bulk of the sales and petrol sales are marginal in comparison.Although the government did start thinking in this direction way back in 2003 its only by September 2008 shall we even see a formal policy for the use of bio-fuel.Forget the date when we shall actually see its implementation.

One big factor working against the implementation of bio-fuels is the fear of the government of diversion of food for commercial purposes[a fear that is not completely baseless]

The ever increasing prices of crude and the subsidy burdens may just force the Government into considering bio-diesel as effective alternative to conventional diesel.

[source:Economictimes]

Ps:In case you did not catch up with the reason why the opposition parties[and even the government's own allies] are so critical about the government,Petrol prices have been increased by Rs.5,diesel by Rs.3 and each LPG cylinder now costs Rs.50 more.Automotive LPG prices are already sold according to the market determined price.