Letters: Is a diesel price hike viable?

This refers to the editorial “A long-overdue raise” (January 3). You have rightly advocated an immediate increase in diesel prices. But in the light of the current political situation, that would be a huge step. However, even a small step like levying an additional duty on diesel-driven cars and sports utility vehicles is not being taken by the Central government. Both the ruling United Progressive Alliance (UPA) and the opposition parties, particularly the Bharatiya Janata Party (BJP), have shown scant regard for implementing a long-term policy on commodity taxation and fixing prices of petroleum products. Since crude price is beyond the government’s control, the only logical step is to put in place a rational policy on taxation of all petroleum products. The BJP leaders have conveniently left it to the UPA to toy with different approaches — most of which are haphazard. It is time that the parties wake up to the impact of the rising crude price and uncontrolled production of two-wheelers and four-wheelers on our crude oil imports and trade deficit.

Narendra M Apte Pune

Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number