'Privatised' subsidies

For the government grappling with the oil subsidy, here is an interesting piece of advice from a senior finance ministry official. The official said one step that might bring down the subsidy the government pays its oil marketing companies could be to allow private companies to access the subsidy window too. Right now, private oil companies stay out of the fuel retailing business owing to the fact that pump prices are set below cost and they cannot access government subsidies like their public sector counterparts. He reckons private companies are likely to demand lower subsidies, plus the step would make the system more transparent.