Why not levy a special cess on petrol and diesel cars to help build public transport systems in our cities?
The prices of petrol and diesel are up once again. At the turn of the century, the fuels that keep our economy on the road dispensed by IOC in the national capital cost Rs. 25.94 a litre (petrol) and Rs. 14.04 (diesel) according to data maintained by Reuters. Today’s price in Delhi is stated to be Rs. 69.05 and Rs. 48.16 respectively. The fuels are normally more expensive in other metros, particularly in the South.
One of the ironies of today is the blame laid at the door of the Indian consumer as a major driver of higher global prices of fuel. Since demand is building in India, the global price of petroleum is mostly up, we are told often. It is no secret that the rising consumption of automotive fuels in India is the result of a conscious policy followed by the Centre and the states, to starve public transport and impose automobile dependence to grow that sector (the bus industry has never enjoyed such growth, though). Hence, we have shrinking access to buses in real terms (cities are growing with static systems), new rail networks will take years to complete, and the middle class is either too disorganised or complacent to make accessible and comfortable transport options a political issue.
The story is too familiar to be recounted in detail, but the reality in short is that most non-motorised forms of transport have been driven off the road, and walking as a form of mobility is made impossible in most cities – footpaths and people-oriented facilities are either absent or crumbling. The government, of course, misses the point that poor mobility actually dampens economic growth, but it is too besotted with the automotive manufacturers to be able to see this.
Chennai's predicament
If you took Chennai as a sample, it has multiple problems with fuel price rise: the present increase in diesel price could lead to a reduction in service of an already static fleet of city buses which have tried to wriggle out of bulk consumer pricing by tanking up at retail outlets. Alternatives such as autorickshaws and mini-vans (locally popular as ‘Tata Magic’ services) would charge arbitrarily in the wake of the increase, and the taxi services, also unregulated in fare tariff terms, would also be free to charge on their own terms.
Given the massive demand for inter-city travel, an across the board rise in diesel price would mean higher fares are inevitable. The Bangalore – Chennai sector, for instance, is heavily served by buses, since the railways is unable to meet the demand. Tamil Nadu also has an extensive network of inter-city connections within the state.
One would argue that a fuel price increase in India should be accompanied by sequestration of some of the funds, to boost investment in bus, rail and tram systems, and to cross-subsidise inter-city bus travel. If many car users can pay Rs. 70 plus for a litre of petrol without blinking, can there not be a small cess of five per cent to fund public transport? Owning a car might therefore appear to be easy, but using it would involve paying the correct social price. Even though it would create a little pain in the short term for car users who are forced to use it, the long-term results would be beneficial.
It is also time to introduce laws that will encourage transparent investment in the taxi market. A big fleet of taxis that are run on proper fares would eliminate the need to own cars, for those who want one merely for family outings or for occasional use. The day’s commute could be handled by air-conditioned buses – thousands of them of different sizes plying to the most congested areas - operating on subsidised fares, and the Metro when it is ready.
But most of this is still part of a wish list. Why are our politicians so cynical towards the middle classes that they refuse to intervene as the price of fuels keeps going north?
Keywords: Petrol Price, Diesel price, public transport, Chennai transport
I think the problem would not be with taxation or the additional cess - since that gets taken away in any case - willy nilly. Take for example, the educational cess of 2% that was levied. Nobody is being given with enough information on WHAT exactly was done with it..! There should be more push towards explaining in some details, at least to some details, what changes, if any, were done through these funding. Any change that I see around my place which is in governmental control would ultimately need to boil down to some source of revenue and that would need to be laid forth for convincing people better on the need for taxes / cess etc. It is not about contribution... its more about distribution.
NO ROOM FOR ANY COMPLAINT AS GOVERNMENT ACTING IN UTTER NATIONAL
INTEREST TO AVERT RATING DOWN GRADE.
SALUTE THE PM AND THE FM FOR THEIR VERY BOLD DECISION TO WALK THE
TALK IN RAISING THE PETROL AND DIESEL PRICES.
At a time when the opposition is too adverse to anything in the
interest of the country and the media playing a negative role and
dancing to the gallery of the views are doing more harm to the country
.
India’s enemy No.1 is crude that India needs to import and that is 80%
and any changes in the prices of crude directly derails the Indian
economy by rising inflation and rating down grade leading to out flow
of foreign funds and hampers growth. By raising the fuel prices in
tune with the international prices simply means that costlier it gets
it lowers consumption that is the need of the hour. Also less it is
subsidized means less printing of notes and so less inflation and
lower the risk of down grade.
Against all odds at the cost of the PM and FM abuse from all corners
these two gentlemen have had the courage to walk the talk that is most
appreciable. So far for the past two years we have seen only flip flop
and dance and drama but it is only recently these two magicians of
India have proved that they can make miracles for India by saving
India’s rating and bringing India to high growth trajectory.
A leader who leads with firmness and action is always proven to lead
better and that is what is visible at the moment and if India’s
destiny have Mody as one of their collegue irrespective of the party
both represent then India can over take any country in the world and
this waste of time of washing dirty linen in the public by both
parties can be stopped We all should prophecies
that both BJP with Mody at the top and Congress with Chindarabaram as
the anchor of the party assimilate and lead the country.
why we are trying to hold live electricity wire without insulation by
hands without gloves.Why we are using costliest imported petro
products or not substituting them when they can be replaced by cheaper
indigenous resources. LPG and SKO can be replasced by by free
solar/induction and free raw lowest grade coal. Motor fuels by 10
times motor fuel efficient railway/ free electric traction / pooling /
mass commutation / RWH / efficient use of every drop of it/ making
lacs of road subwaus within cities to shorten routes etc etc.Both
policy makers and rest of Indians are doing nothing to improve
situation which should be done.
The food grains, sugar and sundries in retail are priced way higher than the Rs 2 per
kg rice provided at fair price shops. That the majority pays that price means they can
afford it. How about adding a 5 % tax to the retail price of food grains and use that
to reduce the cost of PDS produce? That people can pay the ever increasing real
estate costs means we should next tax them further and provide cheaper housing for
those who cannot afford it, shouldn't we?
I can go on, but hope you get the idea.
Petrol and other fuel costs are defined world wide based on need and other factors.
It is about time we start living in the real world like every other country. If you need
it, pay the price. That should apply for diesel too - the MPs and MLAs, SUV and car
owners who get discounted diesel will not agree, but they should pay the market
price as well.
Fuel cost is a minor fraction of the cost of public transport. There are many other
ways to build it. Finally, what is the state tax on petrol?
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