Addicted to subsidy !

 Pre logue :- I know, many of the readers may not like this post !!!

Whenever diesel, petrol, kerosene or gas price increases, there is a hue and cry created in the media. People talk about, how government is insensitive to the burden of the common man.Many want the government to roll  back all the taxes that the government charges on petroleum products, some talk about how cheap oil is in other countries and many tell that cheap fuel is their fundamental right!!!.

The world has been running on this fossil fuel for quite sometime now. The demand for this is increasing in leaps and bounds in a growing economy like India. The prices to the consumers should actually reflect the international crude prices. I do not want to comment on tax structure of petroleum products alone ( we need a separate article to talk about taxation in India).

The international crude prices increase not only based on demand but also on speculation. If we tag our retail prices in tandom with international prices, then the high price would automatically pull down demand. The cure for 'High prices' is always high prices. We should follow examples of countries like Denmark where petroleum products and vehicles for personal use are taxed heavily., This  in one way would reduce the ever increasing traffic :-)

Good public transport systems, Penalising single person driving (a car/four wheeler), Encouraging cycling in cities ( again Copenhagen has > 30% of population commuting by cycles), Heavy investment on alternate source of energy ( esp. Solar power for India) are the need of the day. We need to fight for all this instead of crying about increasing prices. We need to make our growth GREEN and SUSTAINABLE.

I would strongly suggest the reader of this blog to read the book "Hot, Flat and Crowded" by Thomas Friedman, If you have not already done so.  ( In the context of oil prices).

Finally , Never ever expect any SUBSIDY from the government in the long run. It is not good for the progress of the nation.


Simple Indian Food - Feel @home ( Best veg food blog )

" A Ship is safe when it is in Harbour, but the ship was not built for that"


These are just opinions/ ideas exchanged. No one can claim us responsible for any investment failures /losses based on the ideas expressed here.

Feel free to mail your queries/ comments to