Rising petrol and diesel prices in India – What should be done…

The government is considering the proposed increase in petrol and diesel prices by about Rs. 10 and Rs. 5 respectively, and everyone in my office is restless and keeping their fingers crossed to know the actual increase in petrol costs. Suddenly, the excitement shown by people on the IPL matches has waned away…there is a more urgent situation at hand that’s in need of a personal solution.

The government of India seems to be targeting the middle-class people for most of its inefficiencies, right from increase in food prices to exploding fuel prices, which is nothing but an indefinite loop. Of course, one cannot wholly blame the government for the increase in oil prices, since it is a global phenomenon where crude oil is being sold at an unimaginable $135 a barrel. Many analysts have happily predicted that it may touch $200 a barrel, and the analysts’ names appear on popular news sites and magazines.

There are quite a few in my office who own diesel-powered cars and the street price of these cars are close to nine lakh rupees! It’s sad to realize the fact that they will be paying lesser than most of those unfortunate middle-class people who yearned to own a car, putting a major portion of their savings on a good small petrol car. This is the kind of discrepancy that arises in a society that is neither entirely capitalist nor communist. The capitalist oil companies would want the government to increase the petrol and diesel rates to minimize their losses, and on the other hand, the communists would want the diesel prices untouched as it would affect the common man eventually increasing the prices of essential commodities. This is a complex food chain where no one can be entirely satisfied as the political setup of our country is factionalized with hundreds of parties and child parties, each thinking of their own personal good.

There is a proposal which when effected, would bring some stability to the oil companies, and some relief to the middle-class when they pay money for petrol.

This will be realized by the color of diesel – yes, colored diesel for public transport and trucks carrying essential commodities, and colorless diesel for all those rich people who own expensive cars. Currently, diesel is sold at a loss of Rs 23.50 per liter, and petrol for a loss of Rs 16.40 per liter. The government must seriously consider colorizing diesel and selling it at two different rates. Colored diesel can be sold at a subsidized rate to keep the inflation under check, whereas the colorless diesel and premium diesel can be sold at Rs. 60 (or more) per liter. This suggestion is not at all ‘impossible’!

There is another factor that one must consider when being biased, raising the petrol prices and subsidizing the diesel prices; many prospective car buyers would make a sudden jump to diesel cars, which will not be a healthy trend. The whole world is reeling under the pressure of global warming, and this sudden jump to diesel cars will only worsen the situation. Hence, the government, before making haste in hiking the fuel prices, must give a serious thought about colorizing diesel. Of course, petrol car owners are a bit unlucky here, but can derive some pleasure (sadistic, from a diesel car owner perspective!) if only colorless diesel is as costly as petrol! Else, carpool is the last line of defense…

There can also be segmentation of cars based on their on-road prices, and if the price of a car is above eight lakhs the owner must be asked to pay for the costlier version of the car’s fuel – be it petrol or diesel. So owners of top end Hyundai Verna diesel, Hyunda Sonata, top end Honda City, Honda Accord, Honda Civic, Skoda Laura, Skoda Superb, Skoda Octavia, Mahindra Scorpio, Tata Safari, Honda CRV, Mitsubishi Cedia, and the like, should pay a premium rate for these fossil fuels!

Tags: Cars, colorizing-diesel, colorless-diesel, crude oil prices, diesel, fuel-prices, india, petrol, premium-segment-cars

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