[sustran] (no title)

[kisansbc at bom5]

Sub:Diesel Prices

We are responding though belatedly, to  Walter Hook's response dated 
13.10.99 to G Ananthakrishnan's query on increase in diesel prices.

Public transport operators, though basically government owned or
municipalised, are perennially in deficit, subsidies or incentives are not
provided.  The government and municipalities levy charges. So the condition
is really precarious.

Diesel prices were and continue to be subsidised by the govt which controls
the prices for all petroleum products - petrol, diesel, kerosene, naphta
etc. Price of 1 litre of  diesel is lower than a litre of bottled
water-like Bisleri.

Diesel marketed is of low quality. Thus the govt subsidises low quality
fuel attracting car manufacturers to produce and market diesel cars. The
mfrs charge much higher prices for diesel vehicles as if to capitalise on
the cheap diesel prices.

The first step that needs to be done is to raise the price of diesel to the
level of petrol and create a special fund out of the price differential.
This fund should be used for upgrading the quality of diesel so that the
emissions are brought down to international levels as well as to set up and
run health care centres for treating ailments  caused by diesel.

The fund could as well be used to subsidise the public transport in a
numebr of ways. Petroleum product prices are controlled by the state.
Fluctuations in international crude prices result in the country having to
bear a huge loss.  The loss will be around Rs.1500 billion this financial
year.  This too needs to be corrected.  Petrol, diesel etc should certainly
not to be subsidised because such subsidies go to increase pollution and
motorisation.

It is accepted everywhere that public transport should be subsidised.
However the actual situation results in the public transport subsidising
other road user modes. Bus commuter in Mumbai pays to the government and
municipality Rs.0.6 billion to the authorities while private car owner pays
nothing. More cars on narrow roads affect the efficiency of public road
transport -the municipalised BEST Undertaking which provides daily 4-5 to 5
million journeys while motor cars less than 1 million at an average
occupancy of 1.6 persons. Mumbai is amongst the cities having highest road 
fatalities in the world.

Kisan Mehta
President 
Save Bombay Committee