Thursday, March 3, 2011

Petrol Prices in India ... is there a solution ?!! there could be

We find that after the deregulation of petrol prices in India, the correction in prices in market have come about to be on the higher side much to the anguish of the common man.  Now unfortunately he cannot even blame the government for it !!

I strongly feel that during the recent years there has been a spurt in the introduction of varied models of vehicles on the road - each one boasting of the luxurious experiences that it could render to the owner or the user.  Although these vehicles are promising and enticing, much remains to be thought about the resources that it would be drawing on the commodity called 'petrol' and 'diesel.'  These so called sophisticated vehicles were albeit not designed for today's world where scarcity of the resource called petrol is to be managed.  Why are we producing more and more of such vehicles which are not giving economical mileage to a litre of petrol !! Every luxury vehicle hardly gives about 4-5 kms in typically Indian circumstances to a litre of petrol.... where as when we compare the most economical vehicle on the road...we find vehicles which could give more than 13 kms in daily driving conditions. 
... so the norms for production of such vehicles should be automatically set to not less than atleast 13kms.  I feel any vehicle not conforming to this norm should be heavily levied for having produced or sold or owned.. since it is simply taxing and bearing on the already scarce resource adding to the agony of the common man. 

When such vehicles come on the rise the demand goes up and so do the prices!! The levies could be brought about simply in the form of differential pricing of petrol for such vehicle users.  Since these vehicles are not economical on mileage ... they draw more demand... so obviously the solution should be .... PAY MORE !!   Why should a common man suffer because of such vehicles.  If a person can afford to own such a vehicle...can afford to pay as well !! More the uneconomical the vehicle is ... more should be the price paid.


The vehicles are also seen to be huge and bulky ... adding to the space constraint which is one more crucial factors to be considered for differential pricing.  Why not differential pricing be made in all Housing societies, Parking lots etc for vehicles according to the space that it occupies.  After all it is not justified that the small and efficient vehicles pay as much as the huge and large vehicles !!

Ultimately ...when the levies are put in a loop - more tax for vehicles according to class of vehicle, more recurring cost like petrol, parking, insurance renewals, etc...it will have a cycling effect on the production of such vehicles making the manufacturers devise and offer more efficient and better vehicles according to the need of the day rather than imposing their inventions and creations on to the users !! 

On the positive side - the innovative vehicle producers - like solar vehicles, electric vehicles and most economical and green vehicles could be encouraged with sops and concessions !!

In the recently concluded Union Budget or in the earlier ones, unfortunately...such reforms could not take place though !!