First things first, I'm a driver myself. I have considerable trouble putting petrol into my car every month, and the recent price hikes have made it hard for me to continue doing so. Yet, I don't believe that it is unreasonable to be facing increasing prices for petrol.
India doesn't drill a lot of oil out of the ground, and as a result, we have to import most of our oil requirements. Furthermore, an increasing number of cars keep hitting the roads every year. Roads that are already quite full.
Naturally, as is the case in any country in the world that is run democratically, luxuries are taxed heavily, to reduce wasteful consumption of things that are not critically required.
As you know, India is a large country, and naturally needs an effective transportation network. Our buses and trucks run on diesel, therefore diesel is subsidized, to keep necessary commodity prices as low as possible. Petrol, on the other hand, is only used to fuel private vehicles. You have to admit, private vehicles are a luxury, and all luxuries are taxed heavily. It's surprising how people have no problem with spending lakhs of rupees on diamonds, luxury cars, 5-star dining and the like, but expect that they have a right to drive their cars around cheaply or burn away fuel for no reason.
Another problem in India is the fact that we have a large population, and therefore more and more people keep buying cars. There is a limit to how many vehicles will comfortably fit on the roads of a particular city, and all our cities are well past their comfort zone. You see that fact first hand every morning when you're stuck in traffic. It is sensible planning and policy all over the world to tackle such problems with such measures, and if you have a problem with too many cars on the roads, you raise taxes on both the cars and the fuel. It has to be done, and it is natural to do it.
Therefore, what I'm trying to say is: Petrol is a luxury that the country produces very little of. It is natural for the price of a rare luxury to be high. The government spends crores of rupees every year on bringing the cost of petrol down, and now it is slowly cutting back those subsidies. Prices are going to rise, live with it.
I'm putting down the price of petrol in a fuel countries around the world. You'll notice that prices are low in countries with vast oil reserves, and high in countries with practically no oil reserves. In many countries, particularly around Europe, the price is higher than it is in India, while it is particularly low in the Arab world due to vast reserves in the desert, as well as trade agreements for low cost imports.
Algeria - $0.41/L (Rs.19/L) (considerable oil reserves)
Austria - $1.95/L (Rs.92/L)
Bahrain - $0.27/L (Rs.13/L) (oil reserves plus inter-Arab oil trade agreements)
Belgium - $2.32/L (Rs.109/L)
Brazil - $1.53/L (Rs.72/L) (socially, politically and economically similar to India - incredibly, the same price)
Burma - $476/L (Rs.22,500/L) (seriously, I'm not joking. Rs.22,500/L)
China - $0.95/L (Rs.45/L)
Denmark - $2.36/L (Rs.111/L)
Egypt - $0.31/L (Rs.15/L) (Arabs)
France - $2.28/L (Rs.108/L)
Germany - $2.17/L (Rs.102/L)
Hong Kong - $2.16/L (Rs.102/L)
India - $1.58/L (Rs.73/L)
Italy - $2.19/L (Rs.103/L)
Japan - $1.91/L (Rs.90/L)
Kuwait - $0.22/L (Rs.10/L) (Arabs)
Libya - $0.17/L (Rs.8/L) (Vast Reserves/Arabs)
Netherlands - $2.41/L (Rs.114/L)
Russia - $0.94/L (Rs.44/L) (Despite having vast reserves, it's high)
Saudi Arabia - $0.16/L (Rs. 8/L) (Guess why)
Sri Lanka - $1.46/L (Rs.69/L) (Bloody Chamchas)
Turkey - $2.64/L (Rs.124/L)
UAE - $0.48/L (Rs.23/L) (Arabs)
UK -$2.13/L (Rs.101/L)
USA - $1/L (Rs.47/L) (Despite reserves)
Venezuela - $0.02/L (Rs.1/L) (Yea, that's right. Rs.1/L. Reason: VAST RESERVES)
So finally, hope you all understand why I think we should accept the situation as necessary and for the greater good rather than crib about it. And the best solution to rising fuel costs? PUBLIC TRANSIT. Even cabs if you must. Bombay Taxis are still among the cheapest in the world. But preferably, PUBLIC TRANSIT. It really won't kill you to take the bus or train once in a while. Drive your car around too, no harm in it, but try economizing on certain things, such as making it a habit to take the bus or train to work. This is something we're all going to have to live with.
India doesn't drill a lot of oil out of the ground, and as a result, we have to import most of our oil requirements. Furthermore, an increasing number of cars keep hitting the roads every year. Roads that are already quite full.
Naturally, as is the case in any country in the world that is run democratically, luxuries are taxed heavily, to reduce wasteful consumption of things that are not critically required.
As you know, India is a large country, and naturally needs an effective transportation network. Our buses and trucks run on diesel, therefore diesel is subsidized, to keep necessary commodity prices as low as possible. Petrol, on the other hand, is only used to fuel private vehicles. You have to admit, private vehicles are a luxury, and all luxuries are taxed heavily. It's surprising how people have no problem with spending lakhs of rupees on diamonds, luxury cars, 5-star dining and the like, but expect that they have a right to drive their cars around cheaply or burn away fuel for no reason.
Another problem in India is the fact that we have a large population, and therefore more and more people keep buying cars. There is a limit to how many vehicles will comfortably fit on the roads of a particular city, and all our cities are well past their comfort zone. You see that fact first hand every morning when you're stuck in traffic. It is sensible planning and policy all over the world to tackle such problems with such measures, and if you have a problem with too many cars on the roads, you raise taxes on both the cars and the fuel. It has to be done, and it is natural to do it.
Therefore, what I'm trying to say is: Petrol is a luxury that the country produces very little of. It is natural for the price of a rare luxury to be high. The government spends crores of rupees every year on bringing the cost of petrol down, and now it is slowly cutting back those subsidies. Prices are going to rise, live with it.
I'm putting down the price of petrol in a fuel countries around the world. You'll notice that prices are low in countries with vast oil reserves, and high in countries with practically no oil reserves. In many countries, particularly around Europe, the price is higher than it is in India, while it is particularly low in the Arab world due to vast reserves in the desert, as well as trade agreements for low cost imports.
Algeria - $0.41/L (Rs.19/L) (considerable oil reserves)
Austria - $1.95/L (Rs.92/L)
Bahrain - $0.27/L (Rs.13/L) (oil reserves plus inter-Arab oil trade agreements)
Belgium - $2.32/L (Rs.109/L)
Brazil - $1.53/L (Rs.72/L) (socially, politically and economically similar to India - incredibly, the same price)
Burma - $476/L (Rs.22,500/L) (seriously, I'm not joking. Rs.22,500/L)
China - $0.95/L (Rs.45/L)
Denmark - $2.36/L (Rs.111/L)
Egypt - $0.31/L (Rs.15/L) (Arabs)
France - $2.28/L (Rs.108/L)
Germany - $2.17/L (Rs.102/L)
Hong Kong - $2.16/L (Rs.102/L)
India - $1.58/L (Rs.73/L)
Italy - $2.19/L (Rs.103/L)
Japan - $1.91/L (Rs.90/L)
Kuwait - $0.22/L (Rs.10/L) (Arabs)
Libya - $0.17/L (Rs.8/L) (Vast Reserves/Arabs)
Netherlands - $2.41/L (Rs.114/L)
Russia - $0.94/L (Rs.44/L) (Despite having vast reserves, it's high)
Saudi Arabia - $0.16/L (Rs. 8/L) (Guess why)
Sri Lanka - $1.46/L (Rs.69/L) (Bloody Chamchas)
Turkey - $2.64/L (Rs.124/L)
UAE - $0.48/L (Rs.23/L) (Arabs)
UK -$2.13/L (Rs.101/L)
USA - $1/L (Rs.47/L) (Despite reserves)
Venezuela - $0.02/L (Rs.1/L) (Yea, that's right. Rs.1/L. Reason: VAST RESERVES)
So finally, hope you all understand why I think we should accept the situation as necessary and for the greater good rather than crib about it. And the best solution to rising fuel costs? PUBLIC TRANSIT. Even cabs if you must. Bombay Taxis are still among the cheapest in the world. But preferably, PUBLIC TRANSIT. It really won't kill you to take the bus or train once in a while. Drive your car around too, no harm in it, but try economizing on certain things, such as making it a habit to take the bus or train to work. This is something we're all going to have to live with.
1 comment:
Well written Ali. Would only like to add that, the one large difference between countries world over and India, is the fact that governments across the globe spend large amounts on public utilities and transport, and the people residing in those countries value tidiness, behavior that is humane, and hence well maintained public utiilties. In India, on the other hand, WE (and I quote we because the larger population thinks one person cannot make a difference to the way things are run or maintained) live like a bunch of uncouth, uncooperative savages, who are only waiting to tear the government apart! Pity!
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