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RE:Rationing of Oil
by Mohan Kumar on May 30, 2008 05:21 PM

Rationing? Seems nice to hear...but..just imagine your office is 35kms from home...and mine is 3 kms...who would need more fuel?
Say if you need more for emergency..say someone is hospitalized and you need to shunt between home and hospital? Wouldnt your need suddenly go up?
Anything other than market driven (or in other words, need driven) is bound to cause trouble and result in rampant corruption.
The best that can be done is reduce the taxes on fuel ( which is more than 35%)...thats the best govt (state and center) can do for us..but is reluctant to do so.
And if they do so right now...they can infact keep the status quo on todays prices at the current oil prices...From here on let it be market prices...no complex cross subsidies..and over taxing the very same item to recover the subsidy in the process making it more expensive.


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