[sustran] Re: diesel price

[Duarte Rosa Filho]

Greetings from Brazil.
Unaffortunately, here in Brazil we have a lot of experience with diesel
price increases.
This policy wil induce more inflation, because transportation is a great
part of low income persons expenses, besides, it´s a large part of the
transportation costs of merchandises.
Certainly, there will be fares increases.
May be, a cross subsidy from taxes on gasoline, would help to finance the
diesel prices increase.
Hope these short comments will help you.
My business card is attached.
Sincerely,
Duarte

-----Mensagem original-----
De: Ananthakrishnan <ganant at vsnl.com>
Para: Sustrans Discussion List <sustran-discuss at jca.ax.apc.org>
Data: Segunda-feira, 11 de Outubro de 1999 16:34
Assunto: [sustran] diesel price


>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.
>
>
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