[sustran] Re: diesel price

[ITDP]

Public Transit operators might also use the opportunity to press for cleaner,
more fuel efficient buses, rather than for continued fuel subsidies.  Perhaps
the government should provide capital grants for improving the condition of the
rolling stock, which would lower long term maintenance and operating costs,
rather than continuing to subsidize the fuel.  Simply buying new buses in
Hungary recently reduced their fuel costs by 40%, while reducing toxic emissions
by about 20%.  This would exactly offset the fuel price increase, while also
improve the air by having cleaner burning engines.

Best,
Walter Hook

Ananthakrishnan wrote:

> 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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