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Fuel price hike

The opposition parties’ criticism of the fuel price hike is unwarranted. Most of them are attacking the government only to gain political mileage. These parties have to answer two questions. Was any one of them able to avoid effecting a raise in fuel prices while in power? And, if in power now, can any one of them avoid increasing the price? Fuel prices are determined by the international market. It is true that the weaker sections are affected but an alternative for State Governments could have been to bring down the excise tax that would match the increase in the fuel price.

Y. Suresh,

Hyderabad

* * *

Increasing the prices of petroleum products on the basis of even a slight fluctuation in the international market has become the rule adopted by every government in our country. No government, however, initiated any taxation measures to reduce the oil price and help the common man, already overburdened.

Habeeb Rahiman,

Kalladka, Karnataka

* * *

This refers to the editorial, ‘Uneven burden sharing’ (Feb. 16). If the Centre has the will, the price of diesel can be reduced by nearly 20 per cent. The States have kept petroleum products out of VAT and the sales tax on these is an exorbitant 25 per cent. If diesel is declared a commodity of special importance in inter-State trade under Article 286(3)(a) of the Constitution, the States will be forced to bring down the rate of tax on diesel to four per cent.

Nirmala Asokan,

Cuddalore

* * *

What is the reason for Delhi getting petrol or diesel at a discount of 10 per cent for the last three decades? It does not have oil fields or refineries. Still the petrol and diesel prices there are much lower than in Mumbai or Chennai, where there are refineries. If there is some way prices could be kept low there for so long, the same benefit should also be given to the people in other places. If this disparity is removed, and the prices in Delhi are brought on a par with other big cities, it can obviate the need for the current rise in the prices of petrol and diesel, as Delhi’s consumption is substantial.

C.K. Bapiraju,

Hyderabad

* * *

Nowadays, most of those owning a car or a motorbike are generally I-T assesses. Is the present hike (Rs.2 a litre of petrol) too much for these people? The government should introduce a “differential rate system” and supply petrol and diesel at subsidised rates only to commercial vehicles. All I-T assesses should be made to pay unsubsidised prices for petrol, diesel and gas to compensate the losses suffered by the oil companies, and ultimately the national exchequer.

Jagannadha Rao Pannala,

Kakinada

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