[sustran] Re: diesel price

[Roger Higman]

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.
> 

Ananthakrishnan 

I do't know whether you've had a reply to this yet, but you might like
to know that the British Government has been running such a system for
years. The 'fuel duty rebate' started when the buses were state-run but
has been continued even after privatisation. However it doesn't cover
the whole price of fuel, because the Government argues (rightly, in our
view) that bus companies need incentives to conserve fuel, just like
everyone else (local authorities subsidise non-commercial services in
country areas and in the evening, anyway).

I hope this helps.

Roger Higman                                    "A thorn in the side of 
Senior Campaigner (Atmosphere and Transport)         the motor industry"
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