[sustran] diesel price

[Ananthakrishnan]

The Indian Government raised the price of diesel by about 40 per cent
recently, bringing it to about half the price of petrol per litre.

The Government has stuck to its decision so far, though the fallout on
overall cost of living will bring it under severe pressure.  The major
Federation of Chambers of Commerce has backed the Government's move.

Among those feeling the pinch are the Public Transport Corporations, many of
them State-run, and the clamour for higher fares is certain to follow.
Operators in one leftist-ruled state (Kerala) with a predominantly private
bus service, have called for a strike. What options does the Government have
?  There are some States with both private and State run bus transport,
while some cities have Government-only monopolies.

I wonder whether a system of subsidised fuel for Public Transport is
workable.


G.Ananthakrishnan, Chennai-based journalist can be reached at Tel: + 91 44
8413942 , Fax: + 91 44 8415395.