Diesel and Petrol Drop and Rise, Drop and Rise... I

The government is all set to reduce petrol and diesel prices. But they do plan to increase taxes, therefore you and me as a consumer will not be benefited. That's great and here's is what I think about the fuel fiasco

First, there should be no decrease in fuel prices, specially petrol. Diesel may be varied to curb inflation of items that are affected by rising prices of diesel. The problem with fluctuating prices is that the demand fluctuates with in.High price- low demand and low price- high demand. This increases volatility and thus harms the economy. Now they will decrease the prices, people are going to use it liberally and then when crude oil increases as a result of high demand, they increase crude prices and thus demand slows and prices fall.

Second, all private diesel vehicles must be banned. Diesel is the fuel of the masses in India and diesel vehicles that run on cheap diesel steal the benefits (like low ticket fares and goods transportation) that are meant for everyone.

Third, petrol pumps must be run be a local public body.Why should a few benefit from by ripping holes in people's wallet. Currently, a retailer makes a profit of Rs 9.86 a litre on petrol and Rs 3.48 a litre on diesel. If it were state or municipal run, this money could be utilised to build better roads and fund other infrastructure projects (even if there is corruption).
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