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Updated: November 5, 2011 07:31 IST

There should be more deregulation of fuel prices: PM

Vaiju Naravane
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Prime Minister Manmohan Singh addressing a press conference after attending the G-20 summit in Cannes, France on Friday.
Prime Minister Manmohan Singh addressing a press conference after attending the G-20 summit in Cannes, France on Friday.

The Prime Minister added that the markets must be allowed to find their own level, except for those commodities which are semi public goods

Prime Minister Manmohan Singh indicated on Friday that there would be no return to price subsidies despite threats by the Trinamool Congress to withdraw support to his government over the latest decision by oil companies to increase petrol prices.

At a press conference held at the close of the two-day G 20 Summit here, he said: “We cannot live beyond our means, and money does not grow on trees.” The reduction of subsidies was an important part of fiscal discipline, and India should “allow markets to find their own level.”

Dr. Singh virtually justified the increase in petrol prices, saying there should be further movement towards deregulation of fuel prices.

As for the Cannes event, contrary to custom, the Prime Minister did not have a meeting with the G20 conference host, Nicolas Sarkozy of France.

Meetings were scheduled and cancelled at least twice, and the cold-shouldering of

Dr. Singh appeared glaring, compared with the treatment reserved for China's Hu Jintao, who dined privately with the French President on the eve of the Summit.

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When our Prime Minister says that there should be further movement towards deregulation of fuel prices when the whole country is agitated about the the rise in the price of petrol,it is clear that he does't give much importance to public opinion.One wonders whether we have ceased to be a democracy?

from:  K.Vijayakumar
Posted on: Nov 6, 2011 at 19:48 IST

Please conduct audits of oil producing companies - how much profit do they really make? How a basic commodity like petrol can be deregulated in a country where millions of poor use two wheelers and small cars? Perhaps they should fix differential rates for petrol on the basis of cc of cars, keeping lowest price for all vehicles below 800 cc. In Indonesia, once an OPEC country, the price of petrol is IDR 4,500 - roughly equivalent to INR 25 per liter - of course, this is a subsidized price and the government is thinking of differential rates for higher cc of cars.

from:  D. Chandramouli
Posted on: Nov 6, 2011 at 04:20 IST

So MMS can authorize millions of rupees of taxpayers' money to be sent as "aid" to Africa, possibly a billion rupees to B'desh but cannot find the money to support the lifestyle of millions of Indians? And to think that people like him have the gall to declare the Indian economy a "very robust one, with double digit growth". Makes me wonder what would have happened if India had been exposed to the financial crisis in full. Shame on him and his ilk. Time we brought these self-serving people down!

from:  Aritra Gupta
Posted on: Nov 6, 2011 at 00:43 IST

The PM is really frustrated at Indians not supporting Nuclear energy, and trying everybit to slow the process down. He means that we need to realize that we don't have petrol. Its something we have to buy and its costly, developing lifestyles that consume large amount of a costly resource threatens us as a nation. Please all the researchers it is time to look for alternates. And yes its hard. But then changes indeed are hard, and indeed claim the weakest as their first victims. We all need to work together to halp all us rise above.

from:  Amrit
Posted on: Nov 6, 2011 at 00:32 IST

there is no other way than reducing cinsumption of petrol andput a ceiling on the usage of petrol driven vehicles and stop aping western economy and so called reforms engineered and forced on our poor country

from:  T.R.Natarajan
Posted on: Nov 5, 2011 at 21:02 IST

Please put all comments like times of India. Don't lose your customers.

from:  Manivannan
Posted on: Nov 5, 2011 at 18:46 IST

dear voters,we are at fault for electing millionaires to the you have your representation in the parliament.the answer is a big live with it.soon the price of petrol will be Rs 100.we will sit here and will have discussion then too,the need for new political class to emerge is immediate.

from:  sam mathew
Posted on: Nov 5, 2011 at 09:36 IST

I don't want to comment on hike of petrol because hike in prices of any
commodity has become a custom these days. As far as petrol is
concerned, why PM is not looking for other ways which will reduce the
dependence on petrol for transportation. why he is not talking about,
how can we make Public transport cheaper, comfortable & efficient. why
he is not encouraging Eco-friendly mode of transporting. For example,
he can make using bi-cycle inevitable at least once in a week for all
working people throughout country.

from:  manish kumar singh
Posted on: Nov 5, 2011 at 09:02 IST

If living with in our means is a concern, then why exactly are the big corporate honchos getting big time tax subsidies? On the top of that, probably India has the highest taxes on petroleum products. That means, we don't go for direct taxes where we actual can distinguish between the rich and middle class and make them pay their fair share. Rather, we put a heavy indirect tax such that the rich and the middle class are not discriminated. We have to further reduce the subsidy burden lets get the poor into the equation. Shall we remove the subsidy on the kerosene and push all the poor people back to primitive ages to cook with wooden sticks?

from:  Rakesh Chalasani
Posted on: Nov 5, 2011 at 08:36 IST

Austerity should start with the government and it should learn to live
with in means. When last Mr. Prime Minister or his cabinet members
filled petrol in their cars or bought simple Dal or vegetables in the
Time for planners and oil company officials to move out and experience
the real markets of common man to understand the impact of inflation
on households. Petrol is used only by small cars and bikes. Further
there is total disconnect between policy making and actual scene.
Government encourages more vehicles on the roads with out
corresponding infrastructure or public transport and then keep
increasing the fuel prices. Message perhaps is to buy the cars to park
Did some body say there is lack of Governance all around?

from:  Dr. Ratna Magotra
Posted on: Nov 5, 2011 at 08:10 IST

After deregulation of petrol prices every now and then they increase
the price still the petrol co. informing that they incurring
loss,the politicians knowingly giving false reason. They should
analyse/ audit the petrol cos., second they should eradicate the
bribes which automatically spoil the economy. We are having good no.
of advisers and economist who are ruling india, but purposely not
taking steps to implement stern action against the culprits. Ultimately the lower middle and downtrodden people has to suffer for
their bread . Now a days people are getting money for vote the main
reason behind is because of the poverty

Posted on: Nov 5, 2011 at 07:53 IST

The PM is not aware that among the more than 160 countries in the world, we already have one of the highest prices per litre of petrol even in dollar terms. The citizens will welcome any genuine effort to allow the international markets to function freely in India since that may even reduce petrol prices. Before that the PM must first shut down all public sector undertakings in the petroleum sector. The savings from salaries and perks for thousands of employees will be enormous. Is the PM really prepared to take this step before advising the people about the benefits of free markets?

from:  Viswanath
Posted on: Nov 5, 2011 at 07:03 IST

In California I pay $3.8 for 1Gallon (3.8L), which is $1 per liter. This includes tax of 68cents per gallon which translates to 18% tax. Assuming 20% operating profit, US companies produce petrol at 62cents per liter. This is after paying 4 times more transport cost to get crude across the globe from Saudi. In addition, the labor and other operating costs are very high in US compare to India. Hence Indian companies should produce petrol at Rs 30 per liter.(Again this assumes the operating costs as same as US companies) Let us assume we pay 100% tax to cover all the subsidies to diesel and LNG.The price consumer should pay is around Rs 60.00

from:  selva
Posted on: Nov 5, 2011 at 05:24 IST
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